We have four grand children presently in education. Two are just over 18 and about to go to university. The other two are aged 16 and are at a fee paying school
As grandparents we would like to help cover some of their university fees and school fees and have contemplated the following course of action
Provide the funds for the purchase of a new property in the names of the 4 grandchildren. Presumably as two are over 18 then the the property can be registered in all four names ( including the two 16 year olds.)
The four grandchildren would then rent out the property and the proceeds would go towards their school and university fees. Tax on the rental income would be more than covered by their four tax allowances.
In future years should any of them wish to buy a property in their own right than he/she could sell their quarter share to the others at the then market price, and thereby qualify for the low rate stamp duty of a buyer who did not already own a property
Would this scheme work. It Is appreciated that as grandparents we will have created a PET, but we are young enough to reasonably expect to survive for at least 7 years.
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