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Bare trust income - does child declare?

Not my area of expertise!!

Didn't find your answer?

Hello

I have been approached by someone who's parents have set up a bare trust for their 3 grandchildren.  The trust is generating circa £4k of income per year for the grandchildren (all under 18).  As this is way below their annual personal allowances, does this bare trust income need to be declared and if so, how? 

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By Youareatit
22nd Nov 2020 12:14

Quote:

Hello

Bare trust income - does child declare?
Not my area of expertise!!

I have been approached by someone who's parents have set up a bare trust for their 3 grandchildren.  The trust is generating circa £4k of income per year for the grandchildren (all under 18).  As this is way below their annual personal allowances, does this bare trust income need to be declared and if so, how? 

Asked by anonymous.

Very prolific today MR anon.

Note respondents don't like to respond to anon posters, I'm being kind as its Sunday. Despite the fact it's blatantly against the anon posting rules.

As this is beyond your expertise advice is to decline the work.

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Replying to Youareatit:
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By frankfx
22nd Nov 2020 14:22

Quote:

Quote:

Hello

Bare trust income - does child declare?
Not my area of expertise!!

I have been approached by someone who's parents have set up a bare trust for their 3 grandchildren.  The trust is generating circa £4k of income per year for the grandchildren (all under 18).  As this is way below their annual personal allowances, does this bare trust income need to be declared and if so, how? 

Asked by anonymous.

Very prolific today MR anon.

Note respondents don't like to respond to anon posters, I'm being kind as its Sunday. Despite the fact it's blatantly against the anon posting rules.

As this is beyond your expertise advice is to decline the work.

You are it.... provides a good answer.

OP you placed two exclamation marks after your question statement!!

Emphasises your knowledge gap.

No harm in that.

But begs questions.

What independent research did you do before your question,?

What does your in house research material suggest?

If you answer zero to the above.

you are taking the community for granted.

More so as Anon. working for fee paying client.

I would suggest;

Far better to say

'' I am not Anon.

I am providing advice on a Bare Trust.

Novice.

My research suggests
A b c d

I have yet to see the trust deed.

I have yet to speak to the grandparents.... I have received the information from the parents!

Should my engagement letter or onboarding process address bare trust advice.

I would welcome views ....... the parents are clients and I would like to assist.

In all likelihood this is a one- off exercise, but in common with many Awebers I am constantly curious, if not confused

Thank you in advance "

I reckon the above would elicit some good replies.

That would be a win win for the AWEB community.....and you too.

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Replying to Youareatit:
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By Paul Crowley
22nd Nov 2020 16:10

Get a helpline
and do not post anon

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By Michelle Moses
22nd Nov 2020 13:38

.

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By I'msorryIhaven'taclue
22nd Nov 2020 14:58

Google it, and you'll see SA100 not SA107 for income tax declaration by grandchildren. Children's tax liability, but if income tax should become due it would be wiser for trustees to make payment on children's behalf (to prevent the kids from squandering it on sweets or drugs, depending upon their ages).

So long as the beneficiaries remain below their personal allowance / savings income thresholds I'm nut sure HMRC would thank you for sending in tax returns.

Just lately I'm beginning to wonder whether this forum is the go to place for students to have their homework questions answered. Just a thought.

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By Paul Crowley
22nd Nov 2020 15:38

.
Anon

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