The UK Trust Register is a central record of information held by HMRC in relation to trusts in the UK.
Previously, only Trusts that paid certain taxes were required to register via HMRC’s Trust Registration Service (TRS). New rules were brought into force in October 2020 which widened the requirement to register Trusts with the TRS to include all UK Trusts, even if they are not liable to pay tax, with some exceptions.
This impacts new and existing Trusts, and HMRC may impose penalties if the trust is not registered by the relevant deadline.
Which Trusts do not need to be registered?
Trusts which do not need to registered via the TRS include:-
- Charitable Trusts;
- Trusts contained in Wills which are wound up within two years of the death; and
- Existing Trusts created prior to 6th October 2020 with a value of less than £100.
A full list of non-registerable Trusts can be found here.
Who should register Trusts?
It is the responsibility of the Trustees to register the Trust. The Trustees can appoint a lead Trustee to register the Trust via the TRS. Alternatively, an agent can be appointed to register the Trust on behalf of the Trustees.
The Trustees are required to keep up-to-date records of the beneficial owners, trustees and beneficiaries. Once the Trust has been registered with the TRS, any changes to the Trust’s details must be made within 90 days via the Service.
When do I need to register Trusts?
Existing trusts created before 1st September 2022 need to be registered either by the 1st September 2022 or within 90 days of creation (whichever is later) and new trusts created on or after 1st September 2022 must be registered within 90 days of creation.
What information will HMRC require?
HMRC will require information which should be easily accessible by the Trustees including:-
- The trust details (name and date created)
- The Trustees’ names and details such as date of birth and address
- The beneficiaries’ details such as classes of beneficiary, or if there are named beneficiaries, their name, date of birth and address
What happens if I don’t register the Trust?
There will be penalties enforced by HMRC if Trusts are not registered. It has been suggested by HMRC that letters will initially be sent in relation to unregistered Trusts, with a proposed penalty of £100 for any subsequent offences.
Authorising an agent to register a Trust
As mentioned above, you can authorise an agent to register the Trust on your behalf. This is something that we are happy to do for you here at GGP Law.
If you require assistance to register a Trust or for more details, please contact a member of our Private Client team on 01685 885500 or 01495 222214.