Home › Forums › Patrick Cannon › Can the use of a bare trustee avoid the 3% additional rate of SDLT? › Reply To: Can the use of a bare trustee avoid the 3% additional rate of SDLT?
Gareth, a Happy New Year to you too. I am concerned about the bare trust being executed after the completion of the purchase in your name – it would be normal in these situations for the bare trust to be executed before or simultaneously with completion of the purchase from the vendor. HMRC might argue that the equitable and beneficial ownership vested in you for a short period and by subsequently executing the trust you effected a transfer of the property to your company. You will need to persuade them that when you acquired the property it was already impressed with the bare trust that you executed later that day and explain why things were done in this order. If the funds came from the company then a resulting trust in its favour might already exist so this would assist your case.