TSEM1030 - Introduction to trusts: bare or simple trust

A bare or simple trust is one in which each beneficiary has an immediate and absolute title to both capital and income. The beneficiaries of a bare trust have the right to take actual possession of trust property. The beneficiaries of a bare trust should normally return the income and gains on their own personal tax returns and the trustees are not required to make a tax return. The trustees may pay the tax due to HM Revenue & Customs on behalf of a beneficiary, but it is the beneficiary who is strictly chargeable to tax.

TSEM1031-1035 give further advice about how to identify a bare trust.