Bare Trust

Hi, I am considering setting up a GIA in a bare trust. There is never going to be any tax liability as the income and gains will be well within the allowances for the beneficiary. Does anyone know if there is still a requirement to do a tax return where you know the tax liability will be zero? Thanks

Comments

  • There is no requirement to complete a tax return for a nil return.

    There is an issue where the income from the trust is from capital settled by a parent for a minor, unmarried child. Then if it more than £100 pa it has to be reported as income in the hands of the parent. Up to £100 it doesn't, but once over £100 the entire amount is chargeable: it isn't an allowance as such.
  •   Thanks for much for responding, that's really helpful. This is a trust created by will of the child's great-aunt so no issue over parental-link.
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