Summer holiday

We have a client who manages a block of holiday flats. He owns some of the flats and his clients own the remainder.

His income consists of lettings income from his holiday lets and the commission charged to clients for managing their flats. He arranges for the payment of all communal expenses; for example the water rates buildings insurance telephone etc. and these liabilities are then reduced by the amounts that are recharged to clients for specific items such as shares of the above expenses as well as cleaning repairs etc.

Some of the more minor repair work is carried out by our client himself.

There was a time — long ago — when businesses were consolidated like this to count as a business and not property lettings but I do not know why. However the result of this consolidation and a...