Can a company limited by guarantee make an R&D tax credit claim?

Yes, a company limited by guarantee can make an R&D tax credit claim provided that it meets the normal eligibility criteria.

A limited-by-guarantee company is a company with no shareholders. It is instead owned by guarantors, a group of people who have all agreed to pay a certain amount of money if the company has issues and is wound up. Profits from this type of business are re-invested in the company for a variety of purposes.

Here are the eligibility criteria for applying an R&D tax credit claim as a company limited by guarantee:

  • The company is subject to UK Corporation Tax.
  • The claimed R&D activities were not contracted to the company.
  • In relation to the expenditure, no grants or subsidies have been received.
  • For Corporation Tax purposes, expenditures are deductible during the claim period.

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Many factors must be taken into consideration to make a successful R&D tax claim. Our guide R&D tax credits explained helps you understand how your business can get R&D cash back.

F6S can help with your R&D claim