Alan Pink looks at some tax implications of setting up and running a trust.
While trusts as a tax planning device had their wings clipped a few years ago now, they still have a role to play.
On the principle of building what is to come in this article on a firm foundation, we probably need to have a look at what precisely we mean by the term ‘trust’. Whilst they can be of immense practical use in implementing tax-efficient structuring arrangements, so-called ‘bare’ trusts are not the subject of this article, despite the fact that the word ‘trust’ occurs in their description. This is because they are a fundamentally different sort of arrangement from trusts as the term is generally understood.
Probably the best way to define what we mean by a ‘bare’ trust is to quote the definition of them in
