Taxation of Chargeable Gains Act 1992 section 60

Nominees and bare trustees

Section 60 establishes how chargeable gains tax applies when property is held by a nominee or bare trustee on behalf of one or more beneficiaries who are absolutely entitled to that property.

• Where property is held by a nominee or bare trustee, the capital gains tax legislation treats the property as if it were owned directly by the beneficiary or beneficiaries, and the nominee's or trustee's actions are treated as the acts of those beneficiaries.
• This look-through treatment also applies where the beneficiary would be absolutely entitled but for being a minor or otherwise under a legal disability, and extends to two or more persons who are or would be jointly entitled.
• Any transfers of property between the nominee or trustee and the beneficiary are disregarded for capital gains purposes, meaning no chargeable gain or allowable loss arises on such transfers.
• A person is considered absolutely entitled as against the trustee where they have the exclusive right to direct how the property is dealt with, subject only to the trustee's right to retain the property to meet outstanding charges, liens, taxes, costs or other outgoings.