CGT on a bare trust

jennifernil

We set up bare trusts for our grandchildren back in 2013 and now wish to sell the shares in the one for our oldest grandson, he is 19, so that he receives the proceeds.  The shares are all in a single children’s investment plan and bought over several years, how do we, or he, calculate and deal with any CGT due?

poseidon1

Confusingly you say bare trusts ( in the plural) for grandchildren, but then go on to suggest all the share  investments were held in an undivided single investment account.

 If that is the case how on earth have you gone about identifying which shares belong to which child? If dividends were received since 2013, how were they allocated, and if necessary taxed? Were dividends ( if received) ever reinvested?

Were individual bare trust documents set up that identify the capital funds going into each trust, and was new capital added to each trust after 2013?

Has there been any attempt to produce formal accounts for these trusts?

Have the bare trusts been registered with HMRC at any point?.

As you can see the paucity of the information you have given, raises  a host of questions rather than answers.

jennifernil

Yes, one for each of 3 grandchildren.

Funds were added monthly for the 2 older children, from 2013, then contributions stopped a few years back.

Dividends automatically reinvested.

3rd grandchild bare trust was set up in 2018 and contributions still ongoing.

All 3 have been registered with HMRC.

All info on inward payments and shares purchased are available on line, or on paper for earlier purchases.

The scheme was originally with Bailey Gifford, but in 2018 was taken over by Hargreaves  Lansdowne.

No accounts prepared.