Guidance to trustees regarding the Trust Registration Service (“TRS”)
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.
It is now a requirement for trustees to register all UK express trusts and some non-UK express trusts with HMRC even if there is no tax payable, unless the trust is specifically excluded.
Previously trusts only needed to be registered if they were liable to pay tax but these new rules were introduced to extend the scope of the trust register whether or not the trust has to pay any tax.
As a trustee, you need to be aware of the following registration deadlines that must be adhered to:
Non-taxable trusts
Created before 6 October 2020 – must be registered by 1 September 2022.
Trusts that were in existence on or after 6 October 2020, and have since ceased, are still liable for registration on TRS. Trustees of such trusts should register them on TRS and then immediately close the trust record.
Created between 6 October 2020 and 2 June 2022 – must be registered by 1 September 2022.
Created on or after 3 June 2022 – must be registered within 90 days of creation.
An example of a non-taxable trust would be a trust set up on a person’s death when their property or a share of it is held in trust for the benefit of their spouse to continue to live in the property. This is a very common Will trust and would be included within the scope of the new registration requirements.
Taxable trusts
Set up prior to 6 April 2021.
Must be registered by 31 January after the tax year in which the tax liability arose (unless the trustees are liable to income tax /capital gains tax for the first time – see below).
Trusts liable for income tax / capital gains tax for the first time – must be registered by 5 October after the end of the tax year in which the trustees are liable to pay income tax / capital gains tax (this will apply when a registered non-taxable trust becomes taxable going forward).
Set up after 6 April 2021
Where the trustees become liable to pay UK tax before 3 June 2022 – must be registered by 1 September 2022.
Where the trustees become liable to pay UK tax after 3 June 2022 – must be registered within 90 days of the tax liability arising.
The TRS record must be kept up to date. It is a requirement that the information on TRS is updated within 90 days of the date that the trustees become aware of changes to the trust details or beneficial ownership.
If you would like us to register your trust with the TRS, we will need the following information from you:
The trust name, e.g. “The Joe Bloggs Settlement”.
Date the trust was created.
Trustees: full names, addresses, dates of birth and national insurance numbers.
Trust Beneficiaries: full names, dates of birth, national insurance numbers and country of nationality (if possible).
Assets - details of the assets in the trust and their value.
If you require any assistance when dealing with the registration of a trust then please do not hesitate to contact Laura Fahy, or one of our Wills, estates, tax and trusts team by clicking here.
Contact Laura to discuss this further.
