While not expressly clear from the legislation my understanding agrees with that of Ray, in that as a Bare Trust purchaser one looks at the absolute beneficiary. If that beneficiary is a minor, then as per Paragraph 12 (https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/508188/EN_-_SDLT-Higher_rates_for_additional_dwellings_etc.pdf) then we treat that interest as being purchased by the child’s parents. If the child’s parents already own a property at the end of the day of purchase then the higher rates would apply to the purchase being made on behalf of the minor.
Given the child would presumably still continue to live with their parents until turning 18 and it would not be used as their main residence, then as commented while it may seem like an unjust penalty this regulation is doing exactly as the government presumably appears to want in that it is attempting to discourage people from using residential property as an investment vehicle by imposing additional charges.
Duncan McGowan
Rawlinson & Hunter