“Charges for cleaning and maintenance in respect of a commercial property lease may be treated as part of the rental of that property, and therefore exempt from value added tax (VAT), where the two charges are ‘closely linked’, the European Court of Justice (ECJ) has ruled.”
OUT-LAW.com, 27th September 2012
Source: www.out-law.com
“A premium rate service (PRS) provider has been fined £50,000 after the industry’s regulator ruled that it had charged mobile phone users to download a games application without adequate consent to do so.”
OUT-LAW.com, 4th September 2012
Source: www.out-law.com
“When carrying out major works to residential premises, landlords take the risk that their expenditure will not be recoverable unless they comply with the plethora of statutory regulations which now police the recovery of service charges. Compliance with the consultation requirements should be simply a question of employing a good management agent who is familiar with the statutory framework. If all the hoops contained in the regulations are jumped through there should be no bar to recovery of the sums spent.”
Hardwicke Chambers, 16th July 2012
Source: www.hardwicke.co.uk
“Two recent cases once again highlight the importance for landlords of making proper and timely demands for service charges from their lessees and the potential for tenants to exploit a landlord`s failure to do so.”
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Tanfield Chambers, 15th August 2011
Source: www.tanfieldchambers.co.uk
Daejan Investments Ltd v Benson and Others [2011] EWCA Civ 38; [2011] WLR (D) 24
“The proper exercise of the discretion in section 20ZA of the Landlord and Tenant Act 1985 (as inserted) to dispense with the requirement of consultation laid down in the Service Charges (Consultation Requirements) (England) Regulations 2003 did not depend on financial consequences for the landlord or tenant of granting or refusing such a dispensation.”
WLR Daily, 31st January 2011
Source: www.lawreports.co.uk
Please note once a case has been fully reported in one of the ICLR series the corresponding WLR Daily summary is removed.
Commissioners for Revenue and Customs v Annabel’s (Berkeley Square) Ltd and Others
Court of Appeal
“Restaurant employers were not entitled to use discretionary tips, gratuities and service charges paid by customers to waiters and bar staff by card or cheque made out to the employer and subsequently transmitted to the workers by a tronc system to top up the pay of their employees to the national minimum wage.”
The Times, 13th May 2009
Source: www.timesonline.co.uk
Revenue and Customs Commissioners v Annabel’s (Berkeley Square) Ltd and others; [2009] WLR (D) 149
“Money payments made in the form of discretionary service charges by customers to waiters and bar staff by credit or debit card or by cheque, and collected by the proprietor/employer to be transmitted to employees via a ‘tronc’ system (an arrangement for the pooling and distribution to employees), administered by an employee called ‘troncmaster’, did not count towards an employee’s remuneration within the meaning of reg 30(a) of the National Minimum Wage Regulations 1999, to meet the requirement of s 1 of the National Minimum Wage Act 1998.”
WLR Daily, 8th May 2009
Source: www.lawreports.co.uk
Please note once a case has been fully reported in one of the ICLR series the corresponding WLR Daily summary is removed.
Morshead Mansions Ltd v Leon Di Marco
Court of Appeal
“Where a tenant was a member of the landlord company, that company could recover an amount passed by resolution of the company under its articles to finance anticipated expenditure to maintain the building, even though such a claim was unenforceable under the Landlord and Tenant Act 1985 The Court of Appeal (Lord Justice Mummery, Lord Justice Wall and Lord Justice Toulson) so stated on December 10, 2008, allowing the appeal of Morshead Mansions Ltd from the decision of Mr Recorder Mitchell, QC, in Central London County Court, dated January 22, 2008, that a resolution of the company passed pursuant to its articles of association to establish a fund of £400,000 to be designated the 2007 Recovery Fund was not enforceable as a service charge within under section 18 of the 1985 Act.”
The Times, 25th February 2009
Source: www.timesonline.co.uk
Please note the Times Law Reports are only available free on Times Online for 21 days from the date of publication.
Morshead Mansions Ltd v Di Marco [2008] EWCA Civ 1371; [2008] WLR (D) 384
“There was a distinction between the liability of a tenant to pay a service charge to the landlord under the terms of a lease, which was limited by s 18 of the Landlord and Tenant Act 1985, and the liability of the members of a company landlord, in which all the tenants were shareholders, to the company under separate contracts made in and pursuant to the articles of association, to establish and recover contributions to a recovery fund.”
WLR Daily, 15th December 2008
Source: www.lawreports.co.uk
Please note once a case has been fully reported in one of the ICLR series the corresponding WLR Daily summary is removed.
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