Land and Buildings Transaction Tax (Scotland) Act 2013 section Schedule 18 paragraph 20

Meaning of "absolutely entitled" in relation to bare trusts

Schedule 18 paragraph 20 clarifies what it means for a person to be "absolutely entitled" to trust property as against the trustee, for the purposes of identifying a bare trust.

• A person is absolutely entitled to property as against the trustee when they hold the exclusive right to that property.
• This exclusive right is subject only to any outstanding charge, lien, or other right the trustee may have over the property.
• The trustee's residual rights may include the right to use the property to meet obligations such as duty, taxes, costs, or other outgoings.
• The absolutely entitled person must have the right to direct how the property is to be dealt with, subject to those trustee rights.