One of the questions we get asked most regularly at GRA is whether or not an LTC is the appropriate structure for proposed property investment activity. Before we touch on our view in relation to this, I want to confirm some basics in relation to LTCs:
An LTC is a company that elected into the Look Through Company regime for tax purposes. In all other respects it is an ordinary company.
From a tax perspective it is “transparent” which means that profits and losses produced by the activity undertaken by the company is deemed for tax purposes.