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Whilst an order for costs made by the County Court does not necessarily limit later recovery of the full amount of costs incurred under the terms of the lease, close attention should be paid to the terms of the order made, especially when parties are compromising proceedings.
A case management decision showing that the Tribunal may be willing to admit new expert evidence after the deadline for filing has passed (and close to the date of trial) if the new evidence is of substantial importance to the matters in issue and will ensure that questions raised by the other side do not go unanswered.
This case concerned the recovery of unpaid service charges. The landlord demanded of its tenant an interim service charge, being an estimate of the service charge payable for a service charge year. The lessee failed to pay the amount demanded.
A landlord had been entitled to recover VAT by way of service charges which it had to pay to its managing agent in respect of the salaries of the agent's caretaking staff. Such VAT did not fall within the extra-statutory concession set out in VAT Notice 48 at paragraph 3.18.
Where a tenant had paid service charges without demur for a long period of time, it was inferred that he had admitted that the service charges were payable and thus the First Tier Tribunal did not have jurisdiction to determine whether they were payable pursuant to s.27A(4)(a) of the Landlord and Tenant Act 1985. The tenant was thus not permitted to challenge the service charges that were more than 6 years old because they had been admitted.