Introduction to trusts: request for advice or information: request for advice - is the trust a bare trust?
If the agent or lay trustee has asked if the trust is a bare trust, you may write out along these lines:
‘I appreciate that you may have some difficulty in deciding whether the trust with which you are concerned is to be treated as a ‘bare trust’ for tax purposes. I am enclosing some notes, which I hope will help you to make your decision.
If you decide that the trust is not a ‘bare trust’ please complete the enclosed form 41G(Trust). I will then arrange for a Trust and Estate Tax Return to be issued or an SA316 Notice to file in due course.’
If you already have a completed 41G(Trust) and/or have already set up the case for issue of a return, replace the last paragraph above with ‘Please let me know in due course if you think that this is a bare trust’.
You should attach a copy of TSEM1563.
If the request for advice concerns
- a large number of similar trusts, or
- a potentially sensitive trust (for example a compensation or appeal fund type of trust)
refer the status issue to HMRC Trusts & Estates Technical Edinburgh (TSEM1562).