HM Revenue & Custom’s Trust Registration Service (“TRS”) has changed. Previously, trusts that were liable to pay taxes were the only ones that had to register. On 6 October 2020, new legislation came into effect requiring all express trusts in existence to be registered (with a few exceptions).
If you are a trustee of an existing trust, you’ll need to register your trust before 1st September 2022 unless the trust is exempt.
HMRC can impose initial fixed penalties for failure to register your trust and then more stringent penalties if the trustees ignore the registration requirements.
Some trusts are exempt from registration. Official guidance >>
What is the Trust Registration Service
The Trust Registration Service (“TRS”) is a register that was introduced in order to give greater transparency to the beneficial ownership of trust assets, to comply with the new anti-money laundering regulations and to digitalise the registration of trusts.
What Information do HMRC require?
As a trustee, you’ll need to provide HMRC with details of:
- the name of the trust
- the date the trust was created
- to say if the trust is an express trust or not
- details about whether a non-UK trust has a business relationship in the UK
- details about any UK land or property the trust has purchased
- details of the lead trustee and other trustees
- details of beneficiaries
- details of any deceased settlors
- details of any other individuals/organisations involved in the trust
You must register if the trust becomes, or is liable for any of the following taxes:
- Capital Gains Tax
- Income Tax
- Inheritance Tax
- Stamp Duty Land Tax
- Stamp Duty Reserve Tax
- Land and Buildings Transaction Tax (in Scotland)
- Land Transaction Tax (in Wales)
Deadlines for trust registration and updating the TRS
- Non-taxable trusts in existence on or after 6 October 2020 must be registered by the 1st September 2022 (even if they are now closed)
- Non-taxable trusts created after 6 October 2020 must register within 90 days of being created or otherwise becoming registrable, or by 1st September 2022 (whichever is the later)
- Changes to the trust details or circumstances must be recorded on the register within 90 days of the change
Here’s how to register your trust and find out more.
If you would some guidance on whether a trust needs to be registered get in touch with one of our team today.