UK express trusts, and some non-UK trusts in existence on or after 6 October 2020, must be registered with the UK Trust Registration Service (TRS) by 1st September 2022.
The Trust Registration Service (TRS) is an online register of the beneficial ownership of trusts. It was set up in 2017 as part of an EU anti-money laundering directive aimed at combatting money laundering, serious crime, and terrorist financing.
Previously, only trusts that paid certain taxes were required to register with the TRS. The new rules have widened the registration requirement to all UK trusts, including ones not liable to tax.
The duty to register falls on the trustees, who will be liable to pay a fine if registration is not completed by the 1 September 2022 deadline.
Are any trusts excluded?
The only opt-out from the trust registration requirement is if a trust falls within specific exclusions that are considered low risk by HMRC. This includes pension schemes, charitable trusts, will trusts wound up within two years of death, policy trusts paying out on death or critical illness, and existing trusts with a value of less than £100 created prior to 6 October 2020.
Even trusts in the excluded categories must register if they have a liability to UK tax. There are also provisions for non-UK trusts: if this is of relevance to you, we can advise further.
Take stock now
Is it possible that you have been involved in setting up a trust, or acting as a trustee in the past?
What constitutes a trust is not always intuitive. Partnerships are, of course, a common vehicle through which farming businesses operate, and it is not unusual for land and assets to be held by some partners in trust for the partners of the business as a whole. Investments such as stocks and shares held on trust for the benefit of a minor are also included.
How do we register our trust?
The lead trustee should register the trust online at www.gov.uk. The trustee must have an organisational government gateway account.
You will need to enter details on:
- the lead-trustee
- the co-trustees
- the settlor
- the beneficiaries
A complete list of what information is needed is available on www.gov.uk.
Expert help with registering your trust by 1 September 2022
We’ve been helping our clients to run their businesses and manage their affairs in a compliant and tax-efficient way for many years, providing proactive and intelligent advice in a supportive and friendly manner.