Bare Trusts

Worked example for LBTT8002 Bare Trusts.

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.

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