gl01

Thank you very much for your response and for confirming that it would be possible to make a Declaration of Trust. I read on the HMRC website that the beneficiary (my daughter, who is a minor) of a bare trust is taxable on the trust income and gains. So, when I declare the 50% of the rental income in my daughter's Bare Trust, should this rental income be taxed as my daughter's income or should it be taxed as my/my wife's income due to parental settlement rules? Thank you again for clarifying.

Hello, Me and my wife jointly bought a flat and we hold it in trust (bare trust) for our daughter who is a minor. I would like to ask please about income tax on the rental income from the flat in my daughter's bare trust. I read on the HMRC website that sometimes the legal owner is not the beneficial owner, and the legal and beneficial ownership may be separated by a valid Declaration of Trust. Is it possible please to write up a Declaration of Trust having my daughter's Bare Trust as the beneficial owner of 50% of the profit on the property rental income and myself/my wife as beneficial owners of the other 50%? Each party would then pay income tax if any applicable on their share of the income. Thank you in advance for clarifying.