Do I pay tax on money withdrawn from LAQC?
Question from Ged Terry updated on 13th December 2007:
Our expert responded:
This very question has been asked and answered in previous issues, so I will keep my answer brief. An LAQC can make a capital distribution following an asset revaluation. In other words, if you get registered valuations on your properties, these can then be taken up in the accounts of the LAQC. As long as the proper process is followed and various requirements are met (such as the solvency test), then you can pay out a portion (if not all) of the capital growth and if you borrow money to do so, then the interest will be tax deductible. Please make sure you see your accountant about this to ensure that the proper process is followed.
Kenina Court is a director of Acorn Solutions Limited, an accounting firm dedicated to working with clients to help them create wealth. She is an avid property investor, entrepreneur and seminar presenter on asset protection and wealth strategies.