It is now a requirement for trustees to register all UK express trusts and some non-UK express trusts with HMRC by 1st September 2022, or within 90 days of creation, unless the trust is specifically excluded.
The Trust Registration Service (TRS) is a register that was introduced 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.
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.
Deadlines for registering trusts on the TRS
As a trustee, you need to be aware of the following registration deadlines for non-taxable trusts that must be adhered to as penalties may be issued:
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.
What information do we need from you?
If you would like us to register your trust with the TRS, this is what we will need 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 possible).
Which trusts do not need to be registered?
You do not need to register your trust if any of the following apply, unless it has a liability to UK taxation:
The trust is used to hold money or assets of a UK registered pension scheme — like an occupational pension scheme
The trust is used to hold life or retirement policies providing that the policy only pays out on death, terminal or critical illness or permanent disablement, or to meet the healthcare costs of the person assured
The trust is holding insurance policy benefits received after the death of the person assured — as long as the benefits are paid out from the trust within two years of the death
It’s a charitable trust that is registered as a charity in the UK or which is not required to register as a charity
It’s a ‘pilot’ trust set up before 6 October 2020 and holds no more than £100 — pilot trusts set up on or after 6 October 2020 will need to register
It’s a co-ownership trust set up to hold shares of property or other assets which are jointly owned by two or more people for themselves as ‘tenants in common’
It’s a will trust created by a person’s will and comes into effect on their death providing they only hold the estate assets for up to two years after the person’s death
It’s a trust for bereaved children under 18, or adults aged 18 to 25, set up under the will (or intestacy) of a deceased parent or the Criminal Injuries Compensation Scheme
It’s a ‘financial’ or ‘commercial’ trust created in the course of professional services or business transactions for holding client money or other assets
For further information, please click here.
