All trusts with a UK tax liability have been required to register under the Tax Registration Service (TRS) since March 2018. Following the country’s adoption of the EU’s 5th Money Laundering Directive, the scope of the TRS has been expanded. As a result of the change, all existing UK trusts and some non-UK trusts, irrespective of whether the trust has a UK tax liability, need to now register with HMRC too, unless they fall within the list of excluded trusts.
What are excluded trusts?
Excluded trusts include but are not limited to:
- charitable trusts;
- will trusts (for the first two years after date of death only);
- co-ownership trusts where legal and beneficial owners are the same person;
- bank accounts for minors;
- trusts for bereaved minors or adults aged 18-25;
- trusts of life policies paying out on death, terminal illness or disability;
- trusts imposed by courts or created by legislation.
It is important to note that bare trusts have not been excluded and, therefore, will be required to register.
What information is required?
The following information will need to be provided:
- trust name;
- details of assets;
- reference numbers of settlor, trustees and beneficiaries.
Who is the information available to?
The register can be viewed by HMRC and law enforcement authorities.
What is the registration deadline?
The deadline for registrations for non-taxable trusts is 1 September 2022.
Are there any other deadlines?
Both taxable and non-taxable trusts will have 90 days to report any changes. If the trust is taxable, a declaration that the trust is up to date needs to be made on an annual basis by 31 January.
What to do next?
Trustees have a legal duty to comply with the HMRC reporting requirements. If you have any questions, please contact us, and we will advise on the above.
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