Example of a bare trust:
- A holds a house in trust for B who is the beneficiary.
- The house is rented out. B receives all the rent as income.
- A cannot do anything with the house unless instructed to do so by B.
- A is the registered proprietor of the house on the Land Register of Scotland.
- B, as beneficiary, is liable for LBTT.
- If B transfers their rights as beneficiary to C, C has acquired the chargeable interest and will be liable for LBTT on the acquisition if there is any consideration.
For further information about bare trusts please see our Guidance.