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Where Taxpayers and Advisers Meet

Bare Trust/Designated Account Transfer

Jason123456
Posts:74
Joined:Wed Oct 11, 2017 1:53 pm
Bare Trust/Designated Account Transfer

Postby Jason123456 » Mon Feb 26, 2018 11:03 am

As a Trustee of a Bare Trust/Designated Account of a Investment Trust,I have recently transferred this Investment to the Bare Trust benifiary,who is my grandson,having reached the age of 18.The investment has grown over the years and what I would like to know is,does the transfer amount to a sale and hence I could be accountable for Capital Gains tax,or does this only become the case when my grandson were to sell the investment?......who then is CGT accountable.

pawncob
Posts:5090
Joined:Wed Aug 06, 2008 4:06 pm
Location:West Sussex

Re: Bare Trust/Designated Account Transfer

Postby pawncob » Mon Feb 26, 2018 5:13 pm

It's a bare trust, so the property has always "belonged" to the beneficiary. Gain only arises on a disposal.
With a pinch of salt take what I say, but don't exceed your RDA

Jason123456
Posts:74
Joined:Wed Oct 11, 2017 1:53 pm

Re: Bare Trust/Designated Account Transfer

Postby Jason123456 » Mon Feb 26, 2018 5:46 pm

So benificiary is accountable from the date the donor/trustees purchased the investment?

maths
Posts:8507
Joined:Wed Aug 06, 2008 3:25 pm

Re: Bare Trust/Designated Account Transfer

Postby maths » Mon Feb 26, 2018 8:40 pm

Correct.


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