What is HMRC’s Trust Registration Service?
The Trust Registration Service (‘TRS’) was developed as a result of anti-money laundering regulations. It means that trustees have to provide information about the trust, including its assets, all relevant parties and beneficiary details.
Do I need to register the Trust?
If you are a trustee, you will need to consider whether you need to register the trust. An express trust is a trust that has been explicitly created in writing. It can be set up in a Will or in someone’s lifetime. All express trusts, even if they are not taxable will need to be registered with HMRC unless they are excluded (see examples of some types of trusts that do not need to be registered below.) All taxable trusts must be registered under the TRS.
Which trusts do not need to be registered?
There are some express trusts might not need to be registered. Some of these are include:
Trusts created in a Will that only receive assets from a deceased estate and are wound up within two years of the death.
Statutory trusts that are created as a result of following intestacy laws (for example a parent has died without a valid Will and their estate is held for their bereaved minor children estate until they reach the age 18.)
Trusts that hold money or assets of a UK registered pension scheme — for example an occupational pension scheme.
Trusts that hold life or retirement policies providing that the policy only pays out on death, terminal/critical illness etc. of the person assured.
A charitable trust that is registered as a charity in the UK.
A ‘pilot’ trust set up before 6 October 2020 and holds no more than £100 — pilot trusts set up after 6 October 2020 will need to be registered.
A co-ownership trust which holds shares of property or other assets which are jointly owned by 2 or more people for themselves as ‘tenants in common’.
The above list is not exhaustive and if you are unsure whether a Trust needs to be registered then we suggest that obtain specialist advice.
What information will I need to register?
You will be required to provide the following information:
Details about the trust – the name of the trust, whether or not it is an express trust
Trustees – you will need to choose a lead trustee and provide their name, telephone number, date of birth, national insurance number (if available), nationality, passport details (if not a UK citizen) and country of residence.
Settlor – you will need to provide the name, date of birth, date of death (if the trust was created upon death), nationality and country of residence (or last residence).
Beneficiaries – include details of named beneficiaries and classes of beneficiary.
Details of assets held in the Trust.
Details about any others associated with the trust.
What happens if I do not register the Trust?
The HMRC may issue penalties if the trust against the trustees if the Trust is not registered.
Ongoing Obligations on Trustees
Trustees should also be aware that there is also an ongoing obligation to register any changes to the information that has been given to the HMRC. Such changes must be registered within 90 days of the change these include, a change of Trustee, the death of a beneficiary etc.
Our experienced team can advise you whether your trust needs to be registered and we can manage the registration process for you. Get in touch today to talk to our trust team about your needs.
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