Leasehold Rent / Service Charge = Allowable expense within Ltd Company?

[te0 1]

[Ignore - Brain Failure]

 

Hi.

As per the title really.

Are Leasehold Ground Rent Fees and Service Charges an allowable revenue expense within a ltd company structure?

Do they count as bills that are included in the rent? Or is it more complicated as the buisiness would be part owner of the company to which the service charge is being payed?

Thanks!

-T

[DerekT 190]

Hi T

I'm not an accountant, so please double check with yours or I'm sure an accountant on here will be able to confirm. If I'm understanding it correctly, you have a limited company that owns a property with ground rent/service charges payable?

If so, then yes, it'll be considered a business expense, similar to other bills like insurance, accountant fees, travelling associated with running the business. Therefore it'll be deductible from the income prior to corporation tax being applied. 

[berniewales 2]

As a leasehold property manager of 40+ years ... and a freeholder, a leaseholder and buy-to-let landlord of long-leasehold flats ... I can confirm that your Limited company will have income in the form of rent paid by your tenant ... and expenses in the form of letting agent fees, ground rent paid by the company as leaseholder, service charge paid by the company as leaseholder, repairs and maintenance of the flat's interior paid by the company in maintaining flat, etc.

Happy to discuss. BernieWales.co.uk 

[te0 1]

Thanks both!

Sometimes its the simplest things that can confuse when you are trying to learn so much in one go.