Dormant Flat Management Company Accounts

[Any Advice]

Hi , I am the Company Secretary for a small flat management company which was formed to buy the freehold of our block of 2 flats. All finances are kept outside of the Company through our Residents Association.
When the Company formed in 2005 I advised HMRC that the Company would never trade and have always filed Dormant Accounts to Companies House.
The purchase of the Freehold went through last year and according to the Dormant Companies booklet from CH 'some flat management companies whose main purpose is to own the head lease or the freehold of a property choose to become dormant by setting up a residents association to deal with any expenses' So can I just keep filing Dormant Accounts or do I now have to show the Freehold as an asset?
Also have now received a CT204 from HMRC which asks if the Company has acquired any assets, I rang them and said that we now had the freehold and they said this is classed as an asset. According to the form if you answer yes to the asset question you then have to complete the Active Company form, but the Company is not active.
Has anyone come across this before and can offer me any advice.
Thanks

[accountantpete]

Not an expert in this area but basically when a company acquires an asset it ceases to become dormant and you therefore need to file a Balance Sheet as at the end of that accounting period.

After the end of that period, if the expenses are paid by the residents and not the company then the company can file dormant company forms (DCA).

So as I see it you just need file a very basic balance sheet for the year in question and then revert to form DCA for subsequent years.There is no need for the Balance Sheet to be audited etc so it shouldn't be too much trouble.

[Frauke]

Yes I look after a few "Residents Management Company's" and there is a surprising large amount of stuff you need to be aware of depending on how it is run.

Complete the form for HMRC, but tell them its a residents management company and has no Income and they'll accept this.

However if you charge Ground Rent - that is income which you may have to pay Corporation Tax on.

Service charges are treated differently and not liable to Corporation tax.

Interest on Service charges come under Trust for tax purposes but that's another story!

I have to go now. If you need more clarification, let me know and I'll log in again when I get a chance!