{"id":2536,"date":"2022-03-24T04:00:00","date_gmt":"2022-03-24T04:00:00","guid":{"rendered":"im-23401"},"modified":"-0001-11-30T00:00:00","modified_gmt":"-0001-11-30T00:00:00","slug":"bare-or-simple-trusts","status":"publish","type":"post","link":"https:\/\/ep-accountants.co.uk\/bare-or-simple-trusts\/","title":{"rendered":"Bare or simple trusts"},"content":{"rendered":"<p>A trust is an obligation that binds a trustee, an individual or a company&nbsp;to deal with the assets such as land, money and shares which form part of the trust. The person who puts assets into a trust is known as a settlor and the trust is for the benefit of one or more &lsquo;beneficiaries&rsquo;. The trustees make decisions regarding&nbsp;how the assets in a&nbsp;trust are to be managed, transferred or held back for the future use of the beneficiaries.<\/p>\n<p>IHT planning can involve the careful use of trusts. There are a number of trusts which are subject to different tax rules. The main types&nbsp;are bare trusts, discretionary trusts, interest in possession trusts and mixed trusts.<\/p>\n<p>One of the most widely used, and as the name suggests, most basic kind of trust is a bare trust. These trusts are also known as simple trusts or naked trusts. Under a bare trust, each beneficiary has an immediate and absolute title to both capital and income. The beneficiary of a bare trust is taxable on the trust income and gains.<\/p>\n<p>HMRC&rsquo;s guidance states that beneficiaries must include trust income and gains in any tax return they are required to complete or in any forms R40. The trustees of a bare trust may pay the tax due to HMRC on behalf of a beneficiary, but it is the beneficiary who is strictly chargeable to tax.<\/p>\n<p>There are key differences between a bare trust and other types of trusts that are beyond the scope of this article.<\/p>\n<div style='font-size:smaller' class='im_source'>Source: HM Revenue &#038; Customs   Tue, 22 Mar 2022 00:00:00 +0100<\/div>\n","protected":false},"excerpt":{"rendered":"<p>A trust is an obligation that binds a trustee, an individual or a company to deal with the assets such as land, money and shares which form part of the trust. The person who puts assets into a trust is known as a settlor and the trust is for the<\/p>\n","protected":false},"author":1,"featured_media":2537,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_seopress_robots_primary_cat":"","_seopress_titles_title":"","_seopress_titles_desc":"","_seopress_robots_index":"","footnotes":""},"categories":[33],"tags":[],"_links":{"self":[{"href":"https:\/\/ep-accountants.co.uk\/wp-json\/wp\/v2\/posts\/2536"}],"collection":[{"href":"https:\/\/ep-accountants.co.uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ep-accountants.co.uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ep-accountants.co.uk\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/ep-accountants.co.uk\/wp-json\/wp\/v2\/comments?post=2536"}],"version-history":[{"count":0,"href":"https:\/\/ep-accountants.co.uk\/wp-json\/wp\/v2\/posts\/2536\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ep-accountants.co.uk\/wp-json\/wp\/v2\/media\/2537"}],"wp:attachment":[{"href":"https:\/\/ep-accountants.co.uk\/wp-json\/wp\/v2\/media?parent=2536"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ep-accountants.co.uk\/wp-json\/wp\/v2\/categories?post=2536"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ep-accountants.co.uk\/wp-json\/wp\/v2\/tags?post=2536"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}