Freehold management company

Freehold management company

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one of my clients got compensation for a crane being erected in / next to his property as he had to move out , this was paid to the freehold management company who then paid it out to the leaseholder for rehousing costs , am struggling with the taxation implications . my view is that the excess of the compensation over the rehousing costs is subject to corporation tax  (the putative crane licence was never signed by the licencee)

any ideas ?

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By Portia Nina Levin
30th Jul 2015 12:44

Eh?

Who is who?

Is your client the leaseholder? and is that person a company? Does this relate to leasehold business premises?

Or is the leaseholder an individual? with the "freehold management company" being your client, who you think may have to pay corporation tax?

It really is as clear as a bucket of mud.

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By carnmores
30th Jul 2015 21:04

hi portia
The limited freehold company is owned by 4 leaseholders, the company received the compensation and has paid it to the shareholders who are the leaseholders, 10k recd each leaseholder got 2.5k

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By carnmores
30th Jul 2015 21:05

its residential
And leaseholds are held by individuals

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