# Accrued uncommitted service charges

The service-charge money held by the outgoing landlord or managing agent on the RTM acquisition date, less what is needed for costs already incurred, which must be paid over to the RTM company.

Also called: uncommitted service charges, section 94 funds, handover funds.

When an RTM company takes over, the leaseholders' money doesn't stay with the old manager.

## What has to be paid over

- Everything leaseholders paid in service charges (including any [reserve fund](https://runyourblock.co.uk/glossary/reserve-fund)), plus any investments and the interest or income earned on them;
- **minus** what is needed to pay costs incurred before the acquisition date.

It must be paid **on the acquisition date or as soon as reasonably practicable afterwards** (s.94).

## If there's a disagreement

Either side can ask the [First-tier Tribunal](https://runyourblock.co.uk/glossary/first-tier-tribunal) to decide the amount (s.94(3)).

## In practice

Ask early, in writing, for a statement of the funds held, including the reserve, and the costs the old manager says are still to be paid. Record what you expected, what was claimed and what arrived. Pay the money into the company's own bank account, kept separate as [trust money](https://runyourblock.co.uk/glossary/trust-money).

## Related terms

- [Acquisition date](https://runyourblock.co.uk/glossary/acquisition-date)
- [Trust money (section 42)](https://runyourblock.co.uk/glossary/trust-money)
- [Reserve fund](https://runyourblock.co.uk/glossary/reserve-fund)

## Sources

- [Commonhold and Leasehold Reform Act 2002, s.94 (duty to pay accrued uncommitted service charges)](https://www.legislation.gov.uk/ukpga/2002/15/section/94)

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Updated 22 October 2026. Source: https://runyourblock.co.uk/glossary/accrued-uncommitted-service-charges