HMRC has issued new guidance surrounding VAT for site-based staff on leasehold developments.

From 1st November  2018, HMRC has stated that VAT is to be added to the cost of site staff charged through the Service Charge account.

Many elements of Service Charge expenditure already attracts a VAT liability, but with this new guidance, some developments may see an increase in their budget.

Tenants Associations – increased rights

The Tenants’ Associations (Provisions Relating to Recognition and Provision of Information) (England) Regulations 2018 have just been announced.

Recognised Tenants’ Associations have been given new powers to be able to obtain information about leaseholders in their block (if they have consented).

Various requirements have now been placed on Landlords/ agents to acknowledge and respond to any request for this information in a proper manner. Consequences of non-compliance are yet to be tested, but Landlords and agents could find themselves on the wrong side of an application to the First-tier Tribunal.