Flat Management Companies

Typically the company that owns the freehold of a block of flats will collect the service charges, which it then holds as trustee. It is that trust that I have in mind. But of course the freeholder might delegate the task to a management company. HMRC have used the term ‘flat management company’, when they actually mean a trust handling service charges under s.42 Landlord and Tenant Act 1987, for example.