Bare Trust is a term used to describe a situation where one party (party A) holds an asset (such as shares) on behalf of another party (party B). However apart from being the named holder (nominee) party A has no beneficial right to the asset and must exercise control for the benefit of or on the instruction of party B. The income arising on the asset is taxed as part of party B's taxable income, and any capital gains as part of party B's capital gains.