Clarke Willmott

This Practice Note explains that a ‘bare trust’ is an arrangement where the legal ownership of property is in a different name from that of the person beneficially entitled to it. It considers some of the situations in which a bare trust might arise and why they might be used, the inheritance tax (IHT) status of a bare trust and the duties of a bare trustee.

This Practice Note explains how trustees of bare trusts are treated for income tax and capital gains tax (CGT) purposes. It provides examples of bare trusts and the reporting and compliance obligations of trustees and beneficiaries of such trusts.

This Practice Note considers the basic capital gains tax (CGT) principles which apply to trusts, including the CGT consequences of an individual transferring property into a trust, the trustees making actual or deemed disposals of trust property and transfers between trusts.

This Practice Note provides an overview of hold-over relief from capital gains tax (CGT), with particular emphasis on the operation of the relief in the context of trusts. It also explains the conditions that need to be satisfied in order to claim hold-over relief, how to make and withdraw a claim and the restrictions on the relief, including in the context of settlor-interested trusts and transfers to non-UK residents.

This Practice Note considers the main principles of income tax that apply to the beneficiary of a discretionary trust. It covers the source of a beneficiary's income and the calculation of taxable income and income tax.

This Practice Note explains how income tax applies to discretionary trusts (and trusts where income may be accumulated). It includes a discussion of the types of income a trust may receive, deductions the trust may make (trust management expenses (TMEs)) and the rates of tax that apply.