Postby bd6759 » Mon Feb 22, 2021 8:50 pm
The company can only charge what its articles allow it to charge. That amount will be controlled by the leases.
What makes you think that HMRC does not agree that such a company is not trading? HMRC, contributors and legal opinion all agree that the pooling of monies to meet liabilities is not a trade, and even if it were it would be mutual trading. The link you provided doesn’t suggest anything different.
The money is collected to meet future or current liabilities, therefore it is held in trust. Ignoring your racist comment, there is nothing curious about the tenants not having a claim on the funds (insofar as the funds exceed their proper contribution). For example, the assets of any mutual association are held on trust for the benefit of its members, but no member of a club has a claim over those assets, especially after they cease to be a member.
Given the discussions in an earlier topic about trusts, I wonder if all such companies will now need to register as trusts?