Parking a liability

My client is an independent financial adviser. He has been offered an investment opportunity for clients that involves them investing in individual airport parking spaces. The plan is that each client will hold full title on the parking space which will be registered in their name with Land Registry.

The purchase price of the space will be £20 000 and it will then be fully managed with a target yield of 12% a year.

My client has asked whether such an investment would attract business property relief for use with clients wishing to mitigate their inheritance tax liability. My understanding is that it would be eligible for relief.

Query 18 589 – Fly Boy

Reply from SD

Subject to various conditions and exceptions business property relief (BPR) reduces the value of certain assets in an individual’s estate for inheritance tax purposes. For the parking space to...