Lifetime transfer limit possible introduction

[jim jones]

Hi

I am considering making a gift to my minor child in advance of Budget day.

I have registered a bare trust. And the child has a savings account.

Will a same day cash transfer from my bank account to the to the child's savings account be sufficient to effect a gift before Budget day.

Appreciate this is subject any specific anti-forestalling rules - I am just looking for a view based on general principles & any obvious step I am missing.

Thanks in advance for any comments.

[AGoodman]

Yes, a cash transfer is a gift on the day of the transfer.

I am a little confused regarding the registration of a bare trust though. If the bank account is in the child's name (possible for older children), then no trust is involved. If the account is a dedicated child's account, with you as account holder for the child, then the terms are effectively in the account terms and conditions and the account is exempt from trust registration under sch 3A para 6A of the Money Laundering Regs (which govern the Trust Registration Service): https://www.legislation.gov.uk/uksi/2017/692/schedule/3A.

You would only need to register a trust if (a) you have prepared a trust deed and opened a "regular" trust account in the name of the trust or (b) the account is more than cash (i.e. a share dealing account) which is not covered by the exemption.

[jim jones]

Thanks for the helpful response. Yes in due course I would expect to transfer the cash to a share dealing account, hence the bare trust registration, no transferring directly there due to not having got the share dealing account up and running in time.