Likely outcome of the government's continued focus on LAQC's?
Question from Ralph updated on 13th May 2010:
Our expert Mark Withers responded:
One common miss conception around property tax is that somehow a LAQC is necessary to offset tax losses. This is simply not the case, partnershops and sole traderships largely offer the same advantages. The Valab committee into tax reform recommended the LAQC regime to ensure that the tax treatement of small family companies is aligned with that of their partnership cousins. Issues existed around the offset of losses and distribution of capital gains from companies.
The LAQC regime largely addressed these matters and it is simply a byproduct of this that has made the regime popular in the property sector. It is also very popular with small business. I have heard nothing that would indicate the demise of the LAQC and the tax working group report made no mention of the repeal of the LAQC regime.
Mark Withers and his team at Withers Tsang & Co specialise in advising on property related transactions, valuation and restructure services and tax planning.