Client has a number of flats in rental portfilio
On one of the flats, the block management service charge tendered by the freeholder is almost equal to the rent. this is of course unusual and, i suspect includes some kind of capital expenditure, such as roof or building fabric repairs. (not seen the service charge buget so at this stage, pure speculation).
Question is ...
if the service charge includes costs which, appear to be capital in nature, are the management charges allowable as a rental income deduction ?