Our agent account manager from IRD advised us last Friday that the Department has issued bulk mail broadcast to "all" LAQCs clients. You should be receiving one of these letters this week. We have been given a sample of these letters. 

As stated in the IRD letter, if you haven't put your current family home in LAQC, you DON'T need to do anything and you can simply ignore the IRD letter.

This is a special project that IRD is currently undertaking to ensure taxpayers have not put their current family home into LAQC and proceeded to claim a tax deduction. IRD views this as tax avoidance. At Withers Tsang, we are proud of the fact that our advice for the last 11 years has been consistent with this IRD viewpoint.

We are confident that none of our clients should be affected as you have been well advised prior to setting up the LAQC. However, if you feel the letter has prompted you to think of other matters about your LAQC, please do not hesitate to contact one of our senior accountants in the office.