Land and Buildings Transaction Tax (Scotland) Act 2013 Schedule 18 paragraph 19

Definition of bare trust

Schedule 18 paragraph 19 defines the term "bare trust" for the purposes of the schedule dealing with trusts and LBTT.

• A bare trust is one where a trustee holds property for a person (or persons) who is absolutely entitled to it, meaning the trustee has no independent discretion over the property.
• The definition still applies even if the beneficiary would be absolutely entitled but cannot exercise that right due to being under age or having another legal disability.
• Where two or more persons are jointly absolutely entitled against the trustee, the trust also qualifies as a bare trust.
• The definition extends to nominee arrangements, where one person holds property simply as a nominee on behalf of another.