Taxes Consolidation Act 1997 section 567

Nominees, bare trustees and agents

Section 567 sets out the capital gains tax treatment of assets held by nominees and bare trustees, and deals with the position of agents in relation to petroleum exploration activities.

• A beneficiary who is "absolutely entitled" to an asset as against the trustee has the exclusive right to direct how the asset is dealt with, subject only to the trustee's right to resort to the asset for payment of taxes, costs or other outgoings.
• Where assets are held by a nominee or bare trustee for a person absolutely entitled (or who would be so entitled but for being an infant or under disability), disposals and acquisitions by the nominee or trustee are treated as made by the beneficial owner, and transfers between them are disregarded.
• Where exploration or exploitation activities are carried on by a person on behalf of a licence holder under the Petroleum and Other Minerals Development Act 1960, the licence holder is deemed to be the agent of that person for capital gains tax purposes.
• Schedule 1 TCA 1997, which contains supplementary provisions on the charge to tax on Continental Shelf activities, applies to supplement the agency rule for petroleum licence holders.