August 2, 2022
The UK Trust Registration Service (TRS) is a new online platform which trustees should use to register trusts with HM Revenue & Customs.
The service came into existence in 2017 and as from 1 September 2022, most trusts will need to be registered. HMRC have the discretion to share information with other authorities who may have a legitimate interest in the details, to include authorities investigating money laundering and the financing of terrorism.
Which trusts must be registered with the Trust Registration Service?
The following trusts must be registered by the deadline of 1 September 2022:
- UK express trusts, unless specifically excluded
- Non-UK express trusts, to include trusts that:
- hold UK land or property
- have a trustee who is resident in the UK
- have entered into a business relationship in the UK
Trusts liable for any of the following taxes must be registered:
- Capital Gains Tax
- Income Tax
- Inheritance Tax
- Stamp Duty Land Tax
- Stamp Duty Reserve Tax
You will also need to register a trust if you need a Unique Taxpayer Reference (UTR), even if the trust is otherwise exempt from registration.
Which trusts are not required to register with the Trust Registration Service?
Trusts that do not have to register with the TRS include:
- Pension schemes
- Charitable trusts
- Will trusts that are wound up within two years of the date of death
- Policy trusts that paid out on death or critical illness
- Trusts that have a value of less than £100 and that were created before 6 October 2020
How to register a trust with the Trust Registration Service
One of the trust’s trustees should be nominated as the lead trustee. This is the person who should deal with the registration and who will be the main point of contact for HMRC.
They will need to create an Organisation Government Gateway user ID and password on the system before registering the trust.
When the trustee registers the trust, they will need to supply their name, address, email address, telephone number, date of birth, National Insurance number and passport details if they are not a UK citizen and country of residence. Details of the person who put assets into the trust will also need to be provided as well as details of all of the beneficiaries entitled to benefit from the trust.
Information about the trust will need to be provided, such as the type of trust, how it was set up and its unique taxpayer reference.
Trust Registration Service deadlines for registration
Registration deadlines for trusts that are not taxable
Non-taxable trusts created on or before 6 October 2020 must be registered on or before 1 September 2022. For those created after 6 October 2020, registration should be within 90 days of the start of the trust or the date on which it became liable for tax or on or before 1 September 2022, whichever is later.
Registration deadlines for trusts that are taxable
Taxable trusts created on or after 6 April should be registered on or before 1 September 2022 or within 90 days of the trust becoming liable for tax, whichever is later.
For taxable trusts created before 6 April 2021 and where Income Tax or Capital Gains Tax is payable, registration should take place on or before 5 October in the tax year after the trust starts to receive income or the capital gain arises.
Where the trust has previously been liable for Income Tax or Capital Gains tax, it should be registered on or before 31 January in the tax year after the one in which income or capital gain occurs.
For trusts where other taxes are payable, registration should be on or before 31 January in the tax year after the one in which the tax liability arose.
Contact our expert trusts solicitors in Gloucester
If you are a trustee and you believe that your trust needs to be registered, we can advise you and assist with trust administration issues.
Trusts and estates solicitor, Laura Lyes, deals with a full range of trust matters, including advising trustees on legal compliance.