Hi all
Have a client owns many btl and holiday properties and is a higher rate taxpayer.
He pays for his sons private education and wants to now set up a trust whereby the rental profits are payable to the son for his school fees, is there a more tax efficient way of going about this?
Replies (5)
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children or grandchildren?
Your title refers to grandchildren and then you talk about son's school fees.
If it is for his own minor children, it would be a settlor interested trust and any payments made for the benefit of his children (eg school fees) would be taxable on him personally.
Trusts
Even though this looks like a simple case, there are a number of scenarios to consider and they all have different tax implications. One also needs full facts about the settlor/ beneficiaries etc for instance - whether these are regular gifts or payments that are part of a "wealthy" settlor's normal expenditure which would be more tax efficient to give directly to the beneficiairies instead of using trusts and in which case one needs to know about the settlor's income.
If you need more specific help let me know or find a local trust expert.
Gifts
Agree with the above.
Trusts may be over-complicating what could be achieved quite simply with regular gifts, but more info is required.