Alan Pink highlights several instances in which bare trusts may be of potential use in tax planning.
Bare trusts are a simple concept; but they can be a very useful tool in tax planning. Essentially what defines a bare trust, as contrasted with other types of trust, is that the trustee has no discretion over how to deal with the trust assets but must follow the instructions of the beneficiary.
What are they?
One definition of bare trust which is often relevant is contained in TCGA 1992, s 60, which refers to a situation where assets are held by one person for another absolutely, and further elucidates the meaning of this phrase by saying that, subject to certain rights of the trustee, the beneficiary may in every way direct how the asset shall be dealt with.
Capital gains tax is
