Bare Trusts & CGT
Posted: February 22nd, 2021, 8:02 am
My two children each have a bare trust set up for them. Contains ETF index trackers only. As parents we have always declared dividend income on the bare trusts as if it was our own (per £100 rule).
Eldest child hit 18 mid last year. They are currently unaware of their bare trust.
Question1 : I believe dividend Income becomes their 'responsibility' and we no longer need to declare it on our self assessment. Its under the current £2000 allowance so no self assessment needed by the 18 year old?
Question2 : IS the CGT allowance for this child(adult) on these assets £12300 (20/21)?
Younger child is under 18. They are also currently unaware of their bare trust.
Question 3 : To manage the CGT for this child I have (mistakenly?) realised a gain of approx £9000 for 20/21 on the misplaced understanding they also have a £12300 (20/21) CGT allowance. Further reading now suggests this allowance is £6150. Assuming £6150 is correct what is the processto notify HMRC and pay the CGT due?
Many Thanks!
Eldest child hit 18 mid last year. They are currently unaware of their bare trust.
Question1 : I believe dividend Income becomes their 'responsibility' and we no longer need to declare it on our self assessment. Its under the current £2000 allowance so no self assessment needed by the 18 year old?
Question2 : IS the CGT allowance for this child(adult) on these assets £12300 (20/21)?
Younger child is under 18. They are also currently unaware of their bare trust.
Question 3 : To manage the CGT for this child I have (mistakenly?) realised a gain of approx £9000 for 20/21 on the misplaced understanding they also have a £12300 (20/21) CGT allowance. Further reading now suggests this allowance is £6150. Assuming £6150 is correct what is the processto notify HMRC and pay the CGT due?
Many Thanks!