Trust Registration Service: what you need to be aware of

Almost every trust, regardless of its size or type, should now be on HM Revenue & Customs’ (HMRC) Trust Registration Service (TRS), including non-taxable trusts.

The scheme was originally launched in 2017 as part of an EU anti-money laundering directive.

Before this directive, trust registration was limited to only certain taxable trusts who were required to register where they incurred a specific tax liability in the tax year.

Now, the TRS has been extended to all express trusts save for a limited number of exempt categories.

This means non-tax paying trusts will now need to register and provide information such as the details of trustees, beneficiaries and any UK land or property held by the trust.

Which type of trust now needs to register?

From 1 September 2021, the TRS opened for non-taxable trust registrations. Many trusts should now be registered, including trusts set up years ago, which may have been forgotten about but still exist.

According to HMRC, this includes:

  • All UK express trusts unless they are specifically excluded.
  • Non-UK express trusts that acquire land or property in the UK; or
  • Have at least one trustee resident in the UK and enter into a ‘business relationship’ within the UK.

Timeframes and deadlines for trust registration

The deadline and timescales for registration of new or existing trusts are as follows:

  • Non-taxable trusts created on or after 6 October 2020 should be registered (even if they are now closed)
  • Non-taxable trusts created later than September 2022 must be registered within 90 days
  • Changes to the trust circumstances or details must be registered within 90 days of the change
  • The person(s) responsible for managing a deceased’s estate must register with HMRC by 5 October after the tax year when the estate begins to receive income or has chargeable gains on which tax is payable. This applies if the estate is classified as complex and/or has been administered for over two years.

Trustees should register their trust online by following HMRC’s guidance.

If you need advice on Trust Registrations, please get in touch with our expert team.