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CERTAIN NON-TAXABLE TRUSTS MUST NOW REGISTER WITH HMRC
HMRC's online Trusts Registration Service (TRS) has now opened for registration of non-taxable trusts. Prior to this, only trusts subject to a UK tax liability were required to register with the TRS.
From the 1st of September 2021, all UK express trusts (and a greater number of non-UK trusts) must now register with the TRS, even if the trust has no UK tax liability, unless an exclusion applies. The deadline for registration is now the 1st of September 2022 (extended from the original deadline of the 10th of March 2022).
Essentially, registration requires the Trustees of registrable trusts to disclose to HMRC information about themselves, the trust's beneficiaries and the trust's assets. An express trust is one which has been intentionally created by a person, usually in writing.
The following types of trust are excluded from registration unless they incur a UK tax liability:
Once the trust is registered, the Trustees have a duty to update the register if there is a change to the trust or when the trust ends. For the non-taxable trusts, the deadline to update the register is within 30 days of the change or of the termination of the trust.
Trustees may be liable for HMRC penalties if a registrable trust is not registered or if changes to a registrable trust are not reported before the relevant deadlines.
If you are a Trustee or a professional adviser acting for Trustees and you are unsure of how the new trust registration requirements may apply to a trust that you are dealing with, or if you require general trusts advice or assistance, Sarah Nash, a senior Solicitor and STEP member in the Private Client Team at Alexander & Co Solicitors, would be happy to advise you further.
The information contained within this article is provided for information purposes only and does not constitute legal advice. Specialist legal advice should be taken in relation to specific circumstances.