Service charges
The 18-month rule, explained
Why old costs can’t simply appear on a bill years later.
Reviewed by Mark Cunningham AssocRICS MTPI MIFSM, Leasehold Director. Last reviewed 3 October 2026.
Under section 20B of the Landlord and Tenant Act 1985, a cost cannot be charged to leaseholders if it was incurred more than 18 months before it is demanded.
The exception
If, within those 18 months, leaseholders were told in writing that the cost had been incurred and would be charged later, it can still be recovered.
Why it matters
It protects you from surprise bills and encourages timely accounts. Good practice is to issue year-end accounts promptly, as the RICS Code expects.
Sources
Landlord and Tenant Act 1985 (legislation.gov.uk)RICS Service Charge Residential Management Code, 4th editionHow we can help
Full block managementSection 20 major worksAJ LiteWe provide block management across Southport, Churchtown and Kew, Birkdale and Ainsdale, Formby, Ormskirk and Aughton, Crosby and Maghull, Bootle and Litherland, Liverpool, Hesketh Bank and Tarleton and Preston, Penwortham and Longton. For the law in brief, see Know the law.General information about the law in England, not advice on a particular building.