This is hopefully obvious but I haven’t seen it written down anywhere.
Where the trustees of a bare trust dispose of land, presumably the beneficiaries each have the obligation to file the “interim” CGT return and pay the tax on account (rather than the trustees).
Andrew Goodman
Osborne Clarke LLP
Hi Andrew,
Are you talking about the online 60 day reporting CGT? This is only for UK residential properties, not for land.
Lucy Orrow CTA TEP
Lambert Chapman LLP
There’s a house on this particular piece of land 
Correct. Property held on bare trust is not settled property for CGT purposes where the beneficiary but for being a minor has an absolute entitlement against the trustees [TCGA 1992 s 60(1)].
Any capital gains (on disposals) are thus taxed as those of the beneficiary, not the trustee. The trustees make no returns wrt any CGT charge as any returns are the obligation of the beneficiary.
Per HS294 “Capital Gains Tax on the gains of trustees:
As a general rule, the liability to tax on the gains accruing to the trust falls on the trustees. However, there are certain exceptions: if the trust is a bare trust, the trustees are ignored for CGT purposes, and the relevant beneficiaries are treated as if they had carried out the particular transactions themselves”.
Malcolm Finney