Friday, September 14th, 2012 in Commercial, Landlord, Managing Agent, News, Residential, Service Charge
KPMG has reported a case concerning services provided by a landlord and whether such services are subject to value added tax (VAT) In this case the taxpayer rented offices under a lease which provided for three “rents”, for occupying and insuring the building as well as providing certain services. The landlord did not “opt to tax” and thus was not charging VAT on any part of the rents, including the services. The taxpayer sought to reclaim VAT on the services on the basis that the services for which the “service charge” relates were taxable transactions. HM Revenue & Customs rejected this claim on the grounds that the letting of the property and the provision of the services constituted a single exempt supply. The case was referred The Court of Justice for the European Union for resolution.
Read the full article here
Thursday, August 23rd, 2012 in Commercial, Landlord, Managing Agent, News, Service Charge
4-Traders has reported that British Land has scored extremely highly in this year’s independent Property Managers Association (PMA) retail centre management and accounting standards audit review. The PMA introduced the quality assurance programme in 2009 to monitor landlord and managing agent compliance with the RICS Service Charge Code.
Read the full article here
Thursday, August 23rd, 2012 in Landlord, Managing Agent, News, Residential, Service Charge
Sales through the revamped Right to Buy scheme, launched in April, are likely to pick up speed, as it offers 2 million council tenants and 500,000 housing association tenants dramatically increased discounts when buying their home. Writing in 24housing magazine, Emma Duke, associate at Anthony Collins Solicitors, said that both councils and housing associations needed to ensure details on service charges were effectively communicated to avoid potential Leasehold Valuation Tribunal.
Read the full article here
Sunday, July 15th, 2012 in Landlord, Managing Agent, News, Residential, Service Charge
Press Zoom notes that a new report from the London Assembly highlights issues within the service charges regime that affect more than half a million leaseholders in the capital and calls for a change of approach.
Read the full article here
Sunday, July 15th, 2012 in Landlord, Managing Agent, News, Residential, Service Charge
The legal news from Out-Law.com points out that, according to a recent tribunal decision, residential service charges will not be recoverable if the address for service of notices contained in the demand letter is that of the landlord’s managing agent, rather than that of the landlord itself.
Read the full article here
Sunday, July 15th, 2012 in Landlord, Managing Agent, News, Residential, Service Charge
Carl Brown of Inside Housing notes that sector experts have warned that proposed new rules could lead to fewer service charges being covered by housing benefit. Draft regulations for the universal credit, expected to come before parliament in the autumn following a consultation, redefine which service charges are eligible to be covered. Currently regulations list 10 types of service charge which are not eligible. The new regulations turns this on its head and instead lists just three types of charges which are eligible. As a result of the change, lawyers and housing consultants warn that a host of service charges could no longer be covered by benefit. This would mean extra cost to tenants or landlords, or a reduction in services for tenants.
Read the full article here
Thursday, June 21st, 2012 in Landlord, Managing Agent, News, Residential, Service Charge
The Accounting Standards Board of the Institute of Chartered Accounts in England & Wales has issued an Information sheet setting out a proposed Urgent Issues Task Force Abstract ‘Residential Management Companies Financial Statements’. This is to assist residential management companies to determine whether they are acting as principal or agent when undertaking residential service transactions with third parties, and thereby determine which transactions should be recognised in their financial statements. It also deals with protecting the needs of users of Residential Management Companies financial statements (including tenants); and assisting preparers in fulfilling their statutory duties.
Full copy of Information Sheet here
Thursday, June 21st, 2012 in Landlord, Managing Agent, News, Residential, Service Charge
Deborah Caldwell of Manches has reported a case where the landlord tried to defeat its tenant’s break right on the grounds of non-payment of insurance rent and material breaches of the tenant’s repairing covenant. However, the court found that the wording in the lease supported the tenant’s argument. The landlord could only demand the insurance rent once it had itself incurred the cost.
Read the full article here
Monday, June 11th, 2012 in Landlord, News, Residential, Service Charge
Mark Vinall of Winckworth Sherwood has noted that a council that owns a block containing several flats has won its legal dispute with a tenant over the recovery of management charges. The case went to the Lands Chamber of the Upper Tribunal, which decided that no costs had been counted twice, since the council’s finances had been recorded transparently and that it had therefore acted appropriately.
Read the full article here
Wednesday, May 16th, 2012 in Commercial, Landlord, Managing Agent, News, Residential, Service Charge
Siobhan O’Dwyer of the Independent.ie notes that owner Managed Companies (OMCs) are increasingly facing a funding timebomb caused by service charge “won’t payers” who are deliberately avoiding their legal obligation, making a mockery of the legal system and causing great hardship for their neighbours. A sortfall of 15pc-25pc each year can, over a number of years, adds up to a solvency crisis, which threatens the OMCs.
Read the full article here
