Would this plan be acceptable to HMRC?
I have a modest buy to let worth in the region of £110,000. I would like to gift it to my grandson (age 9). The rent would help towards his present school fees and later university fees. Obviously it would need to be held in trust for him by his parents until he is 18.
As the rental income is less than a single person’s tax allowance it would appear that he would pay no tax on the rent until such time he commences to earn a salary.
I appreciate that I would have created a PTE and would need to live for 7 years to discharge the PTE.
My main concern however, is that if I should do this, HMRC may deem it evasion rather than avoidance.
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