HM Revenue & Custom’s Trust Registration Service (“TRS”) has changed. Previously, the only trusts that needed to register were those liable to pay tax. New legislation came into force on 6 October 2020, requiring all express trusts in existence on that date (with a few exceptions) to be registered.
As a trustee of an existing trust, you’ll need to register your trust before 1st September 2022 unless the trust is exempt.
Failure to register your trust could result in HMRC imposing initial fixed penalties and then more stringent penalties if the trustees continue to ignore the registration requirements.
Some trusts are exempt from registration. You can find them here: www.gov.uk/guidance/register-a-trust-as-a-trustee
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 Trust
- Any individual who has control over the trust
What are the 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, for example if the trust becomes liable to tax.
You can find out more and register your trust here: www.gov.uk/guidance/register-a-trust-as-a-trustee
If you would like us to register your trust with the TRS, please contact one of our Trusts and Estate Planning Team without delay:
- Nerina Farmer – 01476 590200
- Joanna Storey – 01522 561026
- Tracey Garner – 01205 314601
- Emma Van-der-Sluis – 01529 301312
- Lisa Eaglen – 01205 314635
or email the team at firstname.lastname@example.org