I am preparing a set of service charge accounts. In line with Tech 3/11 I do a set of service charge accounts and then a separate dormant set of accounts, the latter of which is submitted to companies house.
In the service charge bank account in the year I am doing, they received a lease premium of £7k. Is this subject to corporation tax or not? Is it subject to CGT? The residents might get a shock when they have to pay £1400.
Usually there is no CT unless bank interest is at such a level to result in the CT liability being more than £100. This is the first time I have come across the receipt of a lease premium into the service charge bank. The lease was for 999 years.
Thanks in advance
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