ISA held in bare trust for another

ISA held in bare trust for another

Didn't find your answer?

Is there anything in the ISA legislation that prevents an investor declaring that the investment is held as bare trustee for the absolute benefit of another?  Would it make a difference if the "other" is a body corporate?

Let me say at the outset that I wholeheartedly agree that such a proscription would be entirely reasonable.  Just not sure that it exists.  I would not expect it to invalidate the trust, just invalidate the ISA exemption.

With kind regards

Clint Westwood

Replies (3)

Please login or register to join the discussion.

avatar
By mhtax
21st Jan 2013 17:53

Individual Savings Account

These can only be held by individuals. He must have signed a declaration on opening the account that he fulfilled the required criteria so I would be very worried about the position as it could be seen as an attempt to have morre than one a year.

Thanks (0)
avatar
By nogammonsinanundoubledgame
22nd Jan 2013 08:07

Thanks, but ...

Let us say that he does not have, nor will ever have, another ISA, and the annual amounts invested in this ISA always fall within the individual's statutory limit.  He simply declares a bare trust that it is held for the benefit of (say) a company under his control, for the sole purpose of avoiding or mitigating a corporate tax charge under s.455 CTA 2010 (and perhaps BIK legislation).

So, he has signed the declaration that it fits the qualifying criteria.  My question is whether there are provisions in the "qualifying criteria" that have been breached under these circumstances and so render his signed declaration to be invalid or false.

With kind regards

Clint Westwood

Thanks (0)
By George Attazder
22nd Jan 2013 12:12

If the individual is a bare trustee...

... the beneficiary (the actual investor) needs to be a qualifying individual in order for there to be a valid ISA, I would say.

The legislation is in Ss.694-701 ITTOIA 2005 and SI1998/1870 as amended by SI2011/1780.

Thanks (1)