asillyusername

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