Bare Trust

Self-directed investing

A Bare Trust offers a straightforward way to support your child’s future and lets you invest as much as you like. While these funds are for your child, you can use them for costs like school fees before they turn 18.

Download a Bare Trust application form

Investing for your child with a Bare Trust

Set aside investments for your child in a simple, tax-aware structure. While the assets legally belong to them, you retain control as trustee until they turn 18, deciding on how funds are invested and when they may be used for their benefit.

Key features of a Bare Trust

No investment limit

You can invest from as little as £500. As there’s no upper investment limit, a Bare Trust can be an appropriate investment solution if you want to invest larger sums. All gains and income use the child’s personal tax allowance. An exception is gifts by parents – if the income from the Bare Trust exceeds £100, the full income for the account will be taxed as if it belongs to the parent.

Tax-efficient investing

Contributions from anyone but the child’s parents will be taxed as if they belong to the child, which could mean little or no tax to pay.

Your initial gift into a Bare Trust could also be considered a ‘potentially exempt transfer’ which means it won’t be subject to inheritance tax – provided you survive for seven years after making the gift.

Trustee control

You act as the trustee and retain full control over how the money is invested and used until the child turns 18. The account can remain open after this date.

It’s important to remember that returns from investments into a Bare Trust aren’t guaranteed. The value of investments, and any income from them, can fall and you may get back less than you invested. This does not constitute tax or legal advice. Tax treatment depends on the individual circumstances of each client and may be subject to change in the future. You should always check the tax implications with an accountant or tax specialist. Information is provided only as an example and is not a recommendation to pursue a particular strategy.

Is a Bare Trust right for my child?

All children are eligible and there are no investment limits.
Money held can be used for the child’s benefit under limited circumstances, e.g. for education.
Gains or income may typically use the child’s personal allowances for income and capital gains taxes.
The account can remain open beyond the child’s 18th birthday.

How to invest in a Bare Trust with us

Step 1: Choose your portfolio

Select from six investment portfolios to match your attitude to risk, all designed by our in-house experts.

Step 2: Complete and send the form

Download and complete the Bare Trust application form. Our UK-based team can help with any questions you have.

Call us on 0333 207 9003 or email us at customer.services@brewin.co.uk.

Step 3: Start investing

We’ll confirm when your account is ready. Track your investments anytime through our BPS app or online portal.

Why choose us?

We have over a century of experience in helping people grow their wealth, taking a long-term view of investment and client relationships.

BPS is an execution only, non-advice service. We provide pre-determined portfolios which are designed by our in-house experts. We take on the hard work of picking what assets are in these portfolios, so you don’t have to. You just need to choose your investment style and risk category – we will do the rest.

Expert management, simple fees

You get access to our expert investment thinking through a range of pre-determined portfolios. Our simple fee structure ensures you know exactly what you’re paying, while you can track performance any time via our app or online.

A human touch

We know how important speaking to someone is. Our UK-based experts are on hand to answer your questions. You can call us or email us whenever you need support.

Call us on 0333 207 9003
Monday to Friday 8am to 6pm
Saturday 8am to 12pm

Email us at customer.services@brewin.co.uk

Write to us at:
Brewin Portfolio Service
Sixth Floor, Atria One
144 Morrison Street
Edinburgh, EH3 8BR

Download the Bare Trust application form

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This does not constitute tax or legal advice. Tax treatment depends on the individual circumstances of each client. It may be subject to change in the future. You should always check the tax implications with an accountant or tax specialist. Information is provided only as an example and is not a recommendation to pursue a particular strategy.