The Government welcomes the release of the Board of Taxation's report Review of the Tax Treatment of Bare Trusts
and Similar Arrangements, which follows the completion of a self-initiated review.
Explaining further, he said the case of Imran Khan involved a bare trust
If you put assets into a bare trust
for someone who is not your child, the income and capital gains are taxed as the beneficiary's income and gains.
A Under intestacy, what is set up is known as a bare trust
for the benefit of your daughter.
QI waS reading your section recently in which you mentioned unit trust and bare trust
saving plans for children.
A bare trust
, also known as a simple trust, is one of the most basic and easy to understand forms of trust.
If the grandparents put money into a bare trust
for a child, the investment is taxed as if it is the child's, so there is unlikely to be income tax to pay.
It is often held in a bare trust
for legal reasons designating the child's initial on the application form.
While it was set up under a will it could be a bare trust
, for example for minors yet to come of age, or for the benefit of someone with a life interest or a form of discretionary trust.
These have the advantage of being taxfree and can be held in what is known as a bare trust
for the benefit of the child when he or she reaches 18.
For example, a popular arrangement where investments are bought in the name of an adult but with a designation to a particular child is an Implied Bare Trust
Any income from a Bare Trust
is taxable at a child's rate, and a child has a tax-free personal allowance of up to pounds 6,475 in the present tax year.