TSEM3320 - Trust income and gains: bare trustees: Accrued Income Scheme

ICTA88/S720 (1)

The Accrued Income Scheme does not apply to bare trustees (TSEM6272). They should regard the beneficial owner as making any transfer. If bare trustees complete a Trust and Estate Tax Return they:

• exclude accrued income charges
• show actual income arising, with no deduction for relief under the approved income scheme.

The beneficiary of a bare or simple trust has the right to take actual possession of the trust property. Bare or simple trustees are ‘names’ or ‘dummies’ for the true owner. They are often known as nominees, especially if the assets are shares in a limited company. CG34300 has instructions for deciding whether a person is a bare trustee. The test for CGT purposes is the same as for the Accrued Income Scheme.