SDLTM31710A - Application: Trusts and powers

Bare trusts: Example

Nominees Ltd, a corporate trustee holds a house on trust for X who is the beneficiary.

The house is let. X is entitled to the rents which are X’s income.

X is entitled to do whatever they wish with the house.

Nominees Ltd cannot do anything with the house other than what they are instructed to do by X.

Nominees Ltd holds the title to the house, and the land registry shows the house as held in the name of Nominees Ltd.

If a bare trustee or nominee acquires property on behalf of the beneficiary that will be treated as an acquisition by the beneficiary, the beneficiary being the person liable for stamp duty land tax and responsible for submitting the land transaction return to HM Revenue & Customs.