Flat confusion - LTC

Question from Barb updated on 13th April 2012:

I have been looking at LTC information lately and I see that companies who want to become a LTC cannot be 'flat owning companies'. Does this mean a company which was set up to own rental property as an investment is not able to become a LTC?

Our expert Mark Withers responded:

No but I accept this is confusing. A flat owning company is not a company that owns flats for the purposes of this rule. A flat owning company is a relatively uncommon type of freehold title that was popular in some older apartment blocks where owners hold a share in a company that owns the building rather than a conventional title. The share conveys their ownership of the unit. You can breath again!

Mark Withers and his team at Withers Tsang & Co specialise in advising on property related transactions, valuation and restructure services and tax planning.

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