Company Limited by Guarantee

Corporation Tax due?

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Hi,

We have starting acting for a company Limited by Guarantee (the company provides after school care and holiday clubs for the local primary school). The company has recently started making reasonable profits and I believe CT will be due as per a normal company on these. Could anybody confirm that is the case? Are there any exemptions to this? I believe we will need to look at charitable status in order to avoid CT becoming due?

 

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Portia profile image
By Portia Nina Levin
19th Sep 2017 12:45

What do the company's articles say about surpluses? What happens to them?

What are the company's objects, and how much is the surplus?

You get better flight information oit of RyanAir, to be frank.

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Flag of the Soviet Union
By thevaliant
19th Sep 2017 12:43

As far as I am aware, excepting the structure a limited by guarantee company will have to pay corporation tax as usual if it trades.

It can't pay dividends, but that's it (which begs the question of how the owners will get money out if it is profitable - or is it going to gift away all it's money).

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Replying to thevaliant:
By Ruddles
19th Sep 2017 12:53

Who says that a company limited by guarantee cannot pay dividends?

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Replying to Ruddles:
Portia profile image
By Portia Nina Levin
19th Sep 2017 12:58

The articles, possibly.

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RLI
By lionofludesch
19th Sep 2017 14:41

If you're going for charitable status, form one of these new-fangled CIOs. Not a CA2006 company.

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Replying to lionofludesch:
Portia profile image
By Portia Nina Levin
19th Sep 2017 15:19

You appear to be offering retrospective advice.

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Replying to Portia Nina Levin:
RLI
By lionofludesch
19th Sep 2017 15:25

No. They don't have charitable status yet.

But, if they did, it's easier to just form a new CIO than convert a CA2006 company to CIO. In fact, it's not possible at all in E+W at the moment, though it's coming.

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