A bare trust is one where the beneficial owner of the trust
property is absolutely entitled to both the capital and income from
that property. The trustees of bare trusts are not required to
complete SA returns or to make payments on account.
However, bare trustees are entitled under Section 59 ICTA
1988 to make a return of trust income, but not capital gains and
losses, and to account for the income tax due.
Exceptionally, the trustees will want to make a return, and
in this event you should set up an SA trust record or re-activate a
dormant record.
The trustees must notify you of their intention to make
annual returns and notify the beneficiaries of this fact. The
arrangement should not be changed in future years. Note: Where,
however, it is logical for this arrangement to cease you should
satisfy yourself that there is a genuine reason to do so and accept
the request.
Where there is no likelihood of any tax being due from the
trustees year on year, you should make the SA record dormant.
