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.

Last updated: 
15 February 2015
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