The Trust Registration Service (TRS)
The Trust Registration Service (TRS) is a government register of the beneficial ownership of trusts.
It was first set up in 2017 for trusts where the trustees became liable to pay any of the following taxes:
- Income tax
- Capital gains tax
- Inheritance tax
- Stamp Duty Land Tax (Land and Buildings Transaction Tax in Scotland / Land Transaction Tax in Wales)
- Stamp Duty Reserve Tax
The new rules
New rules, were introduced on 6 October 2020 as part of the Fifth Money Laundering Directive, to improve transparency around the beneficial ownership of assets held in trusts with trustees required to provide details of the trust itself (including its tax residence status and the assets it holds), as well as information in respect of the settlor(s), trustee(s), and potential beneficiaries. The following trusts must register with HMRC by 1 September 2022, if were in existence on or after 6 October 2020
- All UK express trusts, i.e. deliberately created by a settlor (which are not specifically excluded) regardless of whether the trustees incur a liability to UK tax. A UK resident trust is one where either all trustees are UK resident; there is a mix of UK and non-UK resident trustees and the settlor of the trust was resident and domiciled in the UK at the time when the trust was set up or when the settlor added funds to the trust; or there is a corporate trustee that is incorporated in the UK.
- Non-UK express trusts where the trust acquires land or property in the UK on or after 6 October 2020.
- Non-UK express trusts which have at least one trustee resident in the UK when the trustees enter into a business relationship with an ‘obliged entity’ in the UK. An obliged entity includes but is not limited to a financial or credit institution, accountant, tax adviser, legal professional, estate agent, art dealer and other person dealing in certain goods or providing particular services.
- Non-express trusts and specifically excluded express trusts which have a UK tax liability.
Trustees of Express Trusts created after 1 September 2022 will have 90 Days to register the trust with HMRC and any trust changes occurring, once registered must be reported to HMRC within 90 days of the change.
Trust that are specifically excluded from the requirement to register include but are not limited to:-
- Trusts imposed by legislation or court order.
- Estates (apart from registrable complex estates) and trusts created on death that are only in existence for a period of two years from the date of death.
- Charitable trusts.
- Trusts where a disabled person is the beneficiary.
HMRC has placed the responsibility to register a trust solely with the trustees. Trustees who do not register their trust within the prescribed timescale can face penalties imposed by HMRC.
Get in touch for assistance
FB Wealth Management is able to assist trustees with the registration of a trust with HMRC.
If you are interested in receiving registration assistance please do get in touch.
We will be happy to quote a fee for the trust registration work once we know the details of the trust to be registered