Q&A - Advice on tax returns and adjusting the terms of a lease

I recently moved into a block of five flats and we have recently been asked recently to put ourselves forward as directors of the management company and to run it. Please tell me where I can get advice on this and if a personal tax return will need to be submitted to HMRC.

Sarah Jane Whittingham

QUESTION 2

Dear Sir

I write as the Secretary to a small block of flats (6). We are a limited Company and a little while ago 5 of the residents got together to buy the freehold from the original company that owned it. We made a few adjustments to the terms of the lease to suit the more modern times, all of which were agreed by the 5 leaseholders.

However, since this time I believe that there are ways of making the lease work for us. As yet I have been unable to find any source of information that will advise us on how to go about this.

Could you please direct us to the place where we can obtain this information, as at the moment we have no idea as how to make the lease make income for us.

The one occupant who did not participate in buying the lease now pay their ground rent to our freehold company twice a year.

C A Cawley

ANSWER TO BOTH QUESTIONS

There are many sources of advice. News on the Block magazine is obviously one such source. You could also contact the Federation of Private Residents’ Associations (www.fpra.org.uk) or the Leasehold Advisory Service (www.lease-advice.org) - both of whom are able to give free advice (although the former is for the association itself rather than individual leaseholders). You also have the option of speaking to a solicitor who specialises in this area of work, and you may want to contact members of the Association of Leasehold Enfranchisement Practitioners (www.alep.org.uk).

 It is not clear why you are asking about tax returns, but presumably you are thinking that you will be paid as a director and need to account for your remuneration. In fact, it is not common for directors of these companies to be paid. They normally act on a voluntary basis. Therefore, you would not need to be in contact with HMRC