Bare trust income tax

bowlhead99

You can't just complete the bare trust form for your existing account. HL have not set up that customer account as being a trust account with the details of the child in it. They have set it up as being your account with you as beneficial owner. If you want to open up another account as trustee with someone else as beneficial owner, you will need to go through HL's account opening process for that type of account.

If I were them I would not bother allowing people to switch account types and related beneficial parties under the same account number, that is a huge administration and compliance headache. I would direct them to open up a new account where the relevant data gets captured properly from the outset. If the customer wants to then transfer some assets that he owns himself in his own account 1, into an account 2 that is beneficially owned by another person, then I would facilitate that but charge for the admin. It is a standard way of doing business.

In your case you are looking to use a bare trust as part of tax planning that will presumably save you more than £12.50 in tax over the next 16 years. If it will not save you as much as £12.50 in tax you should forget the whole idea. But if it is expected to to save a meaningful amount of tax, then don't try and create some DIY trust flouting the platform provider's rules, in an effort to avoid their costs of administering it for you.