We have a client raising funds for specialist medical treatment (for herself). There is no charitable status etc.
Our client is sole director and shareholder of her own, VAT registered trading company.
In respect of a specific fundraising event, her bank has suggested using the company account. I'm of a mind that this will create a bare trust, with the director as beneficiary and the company as trustee.
Whilst I can find ample information on the consequences where the company is an SPV specifically set up to be trustee, I'm finding less information where the trustee is a trading company.
Can anyone point me to information regarding the VAT, CT and personal tax consequences of such a structure?
Replies (5)
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A company is a legal person, so can be a bare trustee just like any other legal person with capacity. With one or two very limited exceptions, tax generally ignores nominees, as is the case here, but it would be sensible to document the fact that it is so acting in relation to the relevant bank account monies.
I'd find a different way of doing this. You'll spend the rest of your life trying to persuade HMRC/make them understand that these are not company transactions.
You know what a bunch of @rses they are, given that you were once one of the@rses.
if the bank want it - let them set up a client account ? and really help their client achieve the end following their ownHeadline advise !