Transfer of parking spaces to grandchildren?

Transfer of parking spaces to grandchildren?

0:01 AM, 9th August 2024, About A day ago 3

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We own two parking spaces worth about £15,000.

We use the income, £1,800, to fund pension plans for our four grandchildren.

The rent is paid to us which, of course, we include in our tax return with other letting income.

We are thinking about transferring/gifting the spaces to our grandchildren (all under the age of 10) which I assume would relieve the tax liability on us (which could be added to their pension contribution) and reduce inheritance tax.

Grateful for readers’ thoughts/experiences.

Many thanks

Adrian


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TheBiggerPicture

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15:40 PM, 9th August 2024, About 20 hours ago

That's a good yield if in total the value is 15k and you get 1,800 (12%).
unless its 2 @ 15k, in which case a 6% yield isn't too bad.

What kind of parking spaces are they and how do you find 'tenants' for them?

Adrian Jones

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15:53 PM, 9th August 2024, About 19 hours ago

They came up for sale on a new development of high quality apartments several years ago.

The owner of the apartment (for some strange reason) decided to sell them off.

Parking in the area was a problem so I checked on rightmove to see which properties were being advertised for sale which didn't have parking.

I contacted the agents to let them know I had spaces available for long term rent. Agent was happy as it made the sale easier for them.

There is also a large hospital nearby.

Demand far outstrips supply but no intention of selling. Hopefully provide a useful pension pot for the grandchildren in time.

Now looking to reduce tax liability, should have done it before.

SimonP

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19:09 PM, 9th August 2024, About 16 hours ago

May I suggest getting professional advice as you need to be aware that a minor under the age of 18 cannot own land or property in the UK, so it would have to be owned in trust by trustees, e.g. parents, for the beneficial ownership of the children.

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