Transfer of parking spaces to grandchildren?

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?

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.

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.

Thanks Simon. I read that was the case, just wondered if any other readers had any experience of this. I’m assuming there would be no tax liability on the income as the children would have there own allowance.

I imagine setting up a trust is going to be expensive particularly with four beneficiaries. I’ll ask for a quote from a solicitor.

£1,800 a year?

If I was paying HR rate tax on it I’d just sell and lump the proceeds into S&S JISAs in the grandchildren’s names.

If I was paying BR on this income I’d just put the income into a JSIPP or JISA with a view to gifting the parking spot to the grandkids when they’re old enough, after asking them if they want it.