Capital Gains Tax on Bare Trusts

Hitting

Having purchased a F&C Children's Investment Plan several years ago via a Bare Trust, and then transferred it to a Gchild on reaching age of 18 into a F&C Personal investment Plan,during this time the investment has increased in value.From a CGT point of view would Cgt have to be considered at date of transfer for me as Gparent? and does the period to be considered for CGT begin again based on its value when the Gchild received the investment at age 18?

madgagoo

No, a bare trust means that the investment is, and always has been, your grandchilds. Transferring it from your name into theirs is a non event for CGT purposes.

When your grandchild sells the investment the capital gain will be the proceeds they receive less the amount you originally invested (less any dealing costs).

xylophone

https://www.taxinsider.co.uk/763-The_Bare_Essentials_Bare_Trusts.html

Any capital gains arising within the trust are those of the beneficiary but (even though a minor) the beneficiary is entitled to the current annual exempt amount

2016-17 £11,100