.svg){kind=small}
%402x.svg){kind=small}
HMRC have opened up the trust registration service (TRS) to all UK express trusts, taxable and non – taxable unless they are specifically excluded.
These new regulations were brought in to comply with the new Anti – Money Laundering rules.
Some of the trusts that are excluded:
• Estates and trusts created on death providing they hold the assets for up to 2 years.
• Trusts that hold life insurance policies that are paid out on death.
• Trusts that are set up to hold properties (Co – ownership trusts) where the trustees and beneficiaries are the same person
• Trusts that are registered as a charity in the UK.
• UK registered Pension Trusts.
• Trusts where a disabled person is the beneficiary
• A pilot trust that was set up before 6 October 2020 and holds assets with a total value of £100 or less.
• Trusts that are imposed by legislation or court order.
• Trusts that hold bank accounts for minors
• Trusts for bereaved children and adults aged 18 to 25 set up under the will of a deceased parent.
• Trusts that are registered on a European Economic Area (EEA) register.
The Non – UK trusts that must register now are listed below:
• A Non – UK trust that is entering into a business relationship with a UK relevant person, where at least one of the trustees is a UK resident.
• A Non – UK trust that has a Unique Tax Reference (UTR) and incurs a UK tax liability.
• A Non – UK trust that has acquired UK land or property on or after 6 October 2022.
Non-UK trusts will not have to register if all of the trustees are non-UK residents, there’s no UK tax liability and the trust does not hold land or property in the UK directly.
Non – Taxable trusts that were created on or after 6 October 2020 must register within 90 days or on 1 September 2022, whichever date is later.
Taxable trusts created on or after 6 April 2021 must register within 90 days of becoming liable to tax or on 1 September 2022, whichever date is later.
Taxable trusts that were created before the 6 April 2021 are required to register by 31 January following the end of the tax year when the trust became liable to tax.
In addition to registering, non - taxable trusts must notify HMRC of any changes to the details of the trust or ownership within 90 days.
For taxable trusts, you must also declare the trust is up to date on an annual basis by 31 January following the end of the tax year. As per the above, taxable trusts also have to notify HMRC of any changes within 90 days of the changes occurring.
There will be no penalties for a first offence of failure to register or late registration unless the failure to register was due to deliberate behavior on the part of the trustee, £5,000 penalty will be charged.
This is also the case for failing to keep the information on the TRS up to date.
