Posted by: Team TvA
Date: 22 July 2014
The Look Through Company (LTC) is the new kid on the block. The regime effectively replaces the old Loss Attributing Qualifying Company (LAQC). In essence an LTC is a company which behaves more like a partnership than a company for tax purposes. In LTCs both gains and losses are passed onto shareholders in direct proportion to their individual shareholding. Unlike other company structures, assets and liabilities are also considered to be the personal property of shareholders. In fact shareholders of LTCs are treated as owners for tax purposes and not shareholders. As we will see this can create some serious tax costs for the uninitiated.