Calling all trustees (again)

As the government has announced a further round of changes to The UK Trust Registration Service, there is a feeling of déjà vu within the tax team. This time, the net is much further reaching and now includes those that already registered back in 2018. The key date to be mindful of is 1^st September 2022 and the fact that this affects (almost) everyone involved in a trust within the UK. Put simply, all express trusts must register, whether taxable or not by 1^st September 2022.

Sign up for our webinar

The great news is that we’ll be hosting a webinar on 17th May 2022 to help you understand your obligations. The webinar will be nice and short (around 15 mins) as well as a Q&A to answer any burning questions you have. You can sign up here.

What is an express trust?

In broad terms and express trust is an intentionally created trust, which can be either in writing or verbally.

So who is affected by the changes to the UK Trust Registration Service?

As the changes are so far reaching, it is easier to explain which trusts are NOT required to register:

• Trusts created in the course of setting up a bank account for minors or vulnerable persons
• Co-ownership trusts holding joint property where the trustees and the beneficiaries are the same persons
• Trusts holding policies that contain temporary disablement cover and trusts holding healthcare policies
• Pension scheme trusts
• Charitable trusts
• Trusts imposed by court order and some trusts having effect on death

At a glance – what else do you need to know about the changes to the UK Trust Registration Service

• Trusts already registered are required to update their entries, with additional information by 1 September 2022
• Thereafter any new trusts, or relevant changes must be registered within 90 days
• The register must be kept up to date, any updates fall into the 90 day notification window
• The trust registration process is a time consuming, admin heavy process
• HMRC may issue a penalty if the trust has failed to register or submit relevant updates by the deadline
• If in any doubt or your responsibilities and if this applies to you/your family, please get in touch and we can review your position

Trustees have a legal duty to comply with HMRC reporting requirements. If you are a trustees, it is important to understand your obligations under the TRS and register any trust which falls within the reporting criteria. Often, it is clear if a trust should be registered, but as ever with HMRC legislation it isn’t always straightforward. Trustees should take advice based on their trust’s circumstances to establish their obligations ASAP, given the approaching deadlines for registration.

If required to register, gathering information from the beneficiaries can take time and it is important that trustees give themselves plenty of time to hit the registration deadlines. A failure to register a trust or a failure to notify any change of information by the due date may result in penalties being chargeable on the trust.

Don’t bury your head in the sand! Sign up to our ‘Trusts’ webinar at 12.30pm, on Tuesday 17th May, 2022.