From the slides to a recent HMRC webinar, the slide headed “Trust type” includes an option “A flat management company”. How is a flat management company a trust? It is S42 of the Landlord and Tenant Act 1987 that requires service charges to be held generally by the landlord as payee, in trust for the contributing tenants. The contributing tenants will be the settlors, but for some modern developments that could be over 1,000 settlors. Is every tenant going to be expected to provide a national insurance number etc and what happens if a tenant refuses?
Price Bailey LLP