The flats complex where I live is one where each flat owner has a share of the freehold. We have a limited company, Residents Association Ltd, that was used to employ the management company who collect the service charges and pay the expenses. From 2015 though they only file accounts showing the share capital and they say that -
From y/e June 2015 as a result of guidance in technical release 03/11 published by ICAEW, ARMA and RICS, the service charge income, property expenditure and related assets and liabilities are not included in the accounts of the company.
So the management company now prepares separate service charge accounts.
There is a proposal to sell the freehold of a bit of spare land on the site to partly fund replacing our flat roofs, this might sell for say £300,000. The management company said that we would probably have to pay capital gains tax on this. So my question is would that be the case, and if so would it not be offset by the cost of the roof replacement anyway?