Property management Limited company, is it classed as dormant for Companies House and CT?

I am a leaseholder of a shop unit. The whole property is four flats and four shops, the developer handed over the freehold and all leaseholders decided the safest route was to form a limited company and register the freehold to the limited company. We registered with companies house and HMRC. One share per unit. We all pay into a bank account and take money out for repairs and insurance so no trading/profit as such, though some years there is a surplus left in the bank. I need to pull together and submit some accounts but after looking at CH website many similar companies appear to be declared as dormant and only declare the share holding not even balance at the bank. 1.Should I tell Companies House we are dormant as currently shown as active? 2. Will they do that retrospectively back to Jan 2023? 3. does it make a difference as there are shop units as well as flats? Thanks for any help on this.

Hi,
The company’s legal obligations to Companies House are completely separate to HMRC. We can only assist in respect of Corporation Tax.  For guidance please see below:
Set up and run a flat management company
You will note that you must send a Company Tax Return no later than 12 months after the end of the company’s first financial year.  
We may then agree to treat the company as ‘dormant’ after, in which case Company Tax Returns wouldn’t be required for later years provided the company does none of the following:
•    allow directors who aren’t residents or leaseholders to be appointed in its articles of association
•    does more than manage the property in the interests of shareholders
•    make a profit
•    need to pay more than £100 in Corporation Tax in a year
•    get any income from land
•    pay dividends or other payments from profits to shareholders
•    own any assets it is likely to dispose of which would give rise to a chargeable gain
•    make payments that need to be taxed
•    When the company must always send a Company Tax Return
Your company must send a Company Tax Return every year if:
•    HMRC doesn’t write to confirm they think the company is dormant
•    the company starts doing any of the things in the list above, even if HMRC has previously said the company is dormant.
Thank you.

Dear HMRC, Please could you help me regarding this specific post / topic? I am a director of a freehold property company. We are currently active, but wish to move to dormant tax status. We meet all the obligations above, however I'd like to clarify the definition of 'make a profit'. We are non-profit making in respect that we only charge leaseholders service charges to cover the building repairs/maintenance and running costs EG: building insurance. We know we need to save funds for a significant roof repair coming in 5+ years time however and wish to spread the cost by generating more in service charges than our expenditure during the next 5 years. This in theory would generate a surplus of income, but is intended for no purpose other than to allow us to build up the necessary savings to pay for the roof. Please could you clarify how this would be treated within your 'profit' definition and confirm this would not be subject to corporation tax? Thank you

Hi asillyusername,
Not for profit’ does not mean a Company doesn’t need to complete company tax returns and isn’t liable to pay Corporation Tax.
An intention not to make a profit provides no exemption from Corporation Tax. 
Usually, the income received by a property company is not liable to Corporation Tax.
This is because it's not considered 'active' for corporation tax purposes, basically the income is not from trading. 
However, the income is taxable as Property Income, although usually set at a level which leaves a no profit or loss situation at the end of the year (income matching expenditure). 
Sinking funds involves the long term setting aside of funds for major repairs and renewals.
Service charges and contributions to sinking funds fall outside the scope of corporation tax as the landlord or payee is not beneficially entitled to these receipts. 
Calculating your profits in accordance with GAAP, subject to any adjustments required or authorised by legislation, will allow you to deal with any surplus appropriately.  
We have completely separate filing requirements to Companies House and you should check with them as to what these are. 
Thank you. 

The excess enters the sinking fund/property reserve account so when you complete the P&L, it shows there which means the PL account balances and profit is Nil.

Hi Carol,
Please consider the guidance at Set up and run a flat management company.
If after this, you wish to be considered dormant, please write in to CT services:
Corporation Tax Services
HM Revenue and Customs
BX9 1AX
United Kingdom
Thank you.