Bare Trust non T to Taxable?

[handleonthis]

Hi. I duly registered a grandchilds existing bare trust as a non exempt Express bare trust, non taxable . A couple of years later , (as lead Trustee) I sold an amount of the fund they have, in order to move to their junior isa , to balance investment with safer cash. This created a very small amount of CGT which was duly declared on their tax return, and paid . Does this mean that the trust is now considered to be a taxable trust ?

[AGoodman]

I'm afraid so. I'm surprised you were able to declare/pay the CGT without a UTR (only given to a taxable trust) but the trigger doesn't have any de minimis. I believe there is an option to become taxable in the portal.

If you are not expecting any tax liabilities in the current year / immediate future, then (once you have become taxable) you are required to close the registration entirely and re-register as a non-taxable trust again. Yes, this is ridiculous.

https://www.gov.uk/hmrc-internal-manuals/trust-registration-service-manual/trsm94020

https://www.howespercival.com/articles/trustees-now-required-to-close-and-re-register-trusts-that-change-from-taxable-to-non-taxable/