Question to the HM Treasury:

To ask Her Majesty's Government whether VAT is payable on the onsite staff labour element of residential property service charges for properties managed by (1) resident self-management organisations, and (2) independent property services management companies.

Service charges payable by residents to a landlord are exempt from VAT. Supplies of goods and services, including staff, by a property management company to a landlord or a “Right to Manage” company are normally subject to VAT.

There is no difference between resident self-management organisations and independent property services management companies. In both cases the supplies to them by a property management company are subject to VAT.