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HMRC internal manual

VAT Land and Property

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HM Revenue & Customs
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Taxable person: managing agents for property: what is a 'managing agent'?

Many landlords enter into leases with tenants, under which they (the landlords) are bound to repair and maintain the property. Often they do not wish to carry out these duties themselves, and so appoint a managing agent to assume responsibility for repair and maintenance of the property. The managing agent charges the landlord a fee for its services. Sometimes the managing agent is a tenant of the building it is managing.

The general rules on service charges can be found in sections 11 and 12 of Notice 742 Land and property. The guidance in this section will focus on particular problem areas which are often encountered in connection with managing agents.