section 21 L&TA1985 - content keeps changing

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    section 21 L&TA1985 - content keeps changing

    According to a LEASE website advice guide ( https://www.lease-advice.org/advice-...her-issues/#14 ) , s21 L&TA1985 states that

    'where the service charge is payable by the leaseholders of more than four dwellings, the summary must be certified by a qualified accountant as a fair summary and sufficiently supported by accounts, receipts and other documents produced to the accountant'

    but when I follow the link to the legislation website ( http://www.legislation.gov.uk/ukpga/1985/70/section/21 ) I can't find that provision.

    Does any one know the legal source for the statement?

    #2
    Provisions in Acts of Parliament don't come in to effect just because the Act or an amendment has been passed. They have to be commenced. Sometimes the Act itself says when the legislation commences, but more often than not secondary legislation is needed before this happens. In this case there have been two abortive attempts to vary this clause, both of which were only commenced sufficiently to allow statutory instruments to be created to fill in the details.

    The last version of the legislation that was fully commenced and therefore applies to people in the real world, is: https://www.legislation.gov.uk/ukpga...?timeline=true

    The key part, on legislation.gov.uk, tor the later versions is "otherwise prosp" in note F1 on both of them. "prosp" is short for "prospective". Prospective means it is not yet in force. The certain purposes are the making of regulations,

    Basically, the government keeps coming up with a better ways of handling them, but never actually gets them into operation, probably because they can never work out what should go into the regulations.

    Comment


      #3
      The summary of relevant costs is a meaningless exercise and only comes into play if there is a breakdown in the relationship between the landlord and the tenant. The landlord should be volunteering information.

      Comment


        #4
        S21 is rather confusing..as mentioned above..the version you find online is not in force and looks like it never will be..even some FTTs dont fully understand it..it comes done to..IF the lease says accounts must be certified or audited then they must..otherwise there is no obligation to audit even if there are 4 or more properties.
        Advice given is based on my experience representing myself as a leaseholder both in the County Court and at Leasehold Valuation Tribunals.

        I do not accept any liability to you in relation to the advice given.

        It is always recommended you seek further advice from a solicitor or legal expert.

        Always read your lease first, it is the legally binding contract between leaseholder and freeholder.

        Comment


          #5
          The 2002 prospective changes would have made it compulsory to provide the annual summary without request. The latest prospective changes move everything into secondary legislation. The probably problem with the 2002 version is that it required the accountant, which is a significant cost, whereas voluntary provision will usually forestall a formal request without the need for an accountant.

          The biggest problem with the currently in force version, is that prosecution is by the council, but optional, and austerity means they have no money to prosecute.

          Some managing agents make invoices available, online, as soon as they are entered into their accounting systems.

          If you are in an RTM, you have rights under the RTM model articles which allow better access than section 21.

          In call cases, confidentiality and data protection still apply. Details of works quotes may be confidential until the deadline on submitting tenders.

          Comment


            #6
            Data Protection does not apply if other legislation requires information to be disclosed

            Comment


              #7
              The RICS guidelines which are included in secondary legislation say that data protection does apply. Generally legislation that overrides data protection says this explicitly.

              Comment


                #8
                The 1996 version of section 21 is in force, and that does require certification, if a formal request is made.

                The usual area of confusion is audits. There is no requirement for an audit unless the lease requires one.

                Clause 21 (6) in the active version of the legislation says:

                (6) If the service charges in relation to which the costs are relevant costs as mentioned in subsection (1) are payable by the tenants of more than four dwellings, the summary shall be certified by a qualified accountant as—....

                Comment


                  #9
                  The Data Protection Act includes an exemption where a Data Controller is required to disclose information under other legislation

                  Comment


                    #10
                    The Data Protection Act no longer exists.

                    Section 21 only requires a summary of costs (i.e. not of income). (Although it refers to demands for service charges, these are the invoiced figures, and don't reveal anything about what was received. They would normally deducible from the terms of the lease.)

                    Section 22 only requires documents to support the summary from section 21.

                    I'd therefore say there is no requirement to provide details of (cash basis) income, or lack thereof, and it is generally only income that would be personal information.

                    Comment


                      #11
                      The Data Protection Act 2018 exists. A s21 summary of relevant costs includes charges which have been paid so the s22 documents must include bank statements.

                      Comment


                        #12
                        Here is the explanation : too many versions of S21

                        https://www.servicechargedisputeguid...e-information/

                        Comment


                          #13
                          Are you sure you want the 'service', you pay hundreds of pounds for an accountant to take the agents figures and add them up again.

                          It does little to help you work out what is going on.

                          Comment


                            #14
                            Thanks for all the replies.

                            This is what it's about.

                            The freeholder owns one flat direct and I suspect he doesn't contribute his share to the service charge fund.

                            An independent accountant would be able to verify this. Also, do all the leaseholders pay equally as the lease says they should.

                            If leaseholder64 is correct (costs only not income) then s21 would not help.

                            Comment


                              #15
                              The information provided will tell you how much was billed to the person in question. It just wouldn't tell you how much he paid.

                              If he is not paying, and you he won't be able to cover the costs, or you will be able to see that your service charge exceeds your share of the costs.

                              In practice, an accountant following ICAEW TECH 03/11, will also create a balance sheet, and if someone is not paying, that will show an excess figure in Debtors, although the effects of accrual accounting done properly, can also create debts against pre-payments to suppliers, but these will be fairly static from year to year.

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