I let out a flat that I have owned since 1997; I am thinking of selling it soon, as I don’t need the money. I would like to give my thirteen-year-old grandson most of the proceeds for a deposit. Could you please advise me on the best way to do this? I realise there will be tax to pay; I am in good health and hope to be around for seven years! Or would it be better to keep renting it out till nearer the time when he is ready to buy a property? 

Arthur Weller replies:  

Perhaps the best thing would be to simply give your grandson the flat today and hope to live for seven years after the date of the gift. This way, you can start the seven-year clock straight away, but nevertheless, your grandson can benefit from the rental income. Since the flat is coming to him from his grandmother, only he will be taxable on the rental income, and not anyone else.