Dear AW members
Hope you are keeping safe and sane.
A service charge trust fund (per S42 of the Landlord and Tenant Act 1987) has received over £1k from finance charges imposed on arrears (in accordance with the lease).
The management company wants to offset an administration fee against this income to mitigate the 20% income tax. They have incurred this fee in the course of processing the finance charge levied.
Is this an allowable Trust Management Expense? I understand it’s not.
Your advice would be gratefully received.