What's the best form of structure now?

Question from Simone updated on 29th April 2011:

My partner and I are about to purchase our first property. We plan on moving into the property first off and getting flatmates then taking some time overseas. At the point of us leaving I am wondering what is the best form of ownership? Is it best to establish a LAQC for example now when we purchase the property or sell it to a LAQC when we are ready to leave and tenant the propery? I am looking for a cost effective solution which has the best tax advantages. Also one other question. Do the tax refunds from a LAQC come as monies or a credit for the next tax year? Thank you for your help.

Our expert Mark Withers responded:

The golden rule is to plan the structuring around the predominant purpose, for now that is personal ownership as your family home. This means an LAQC is not appropriate, personal ownership in your own names should be just fine and is also likely to be totally acceptable when you decide to rent it out permanently. Get some advice on the cross boarder tax issues before you leave for overseas though. The LAQC as we have known it will cease to exist as a result of the governments tax reforms. 

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


Search the Ask an Expert archive

Browse all questions in the Ask An Expert Archive »

Site by PHP Developer