New deadlines for trust registration
The UK Trust Register
The Trust Register is now the only way that trusts can be notified to HMRC for tax purposes. It is imperative that trustees of all new and existing trusts (whether UK based or offshore) assess whether they fall within the registration requirements and to register their trust if required to do so.
The Trust Register was introduced in June 2017 and at that time trusts were only required to be registered if they were liable to pay UK tax. In October 2020 new trust registration legislation was introduced which meant the majority of trusts now have to be registered, regardless of whether they have a UK tax liability. Non-UK trusts will also be required to register if they are liable to tax in the UK.
What is the Trust registration deadline?
If a trust has a UK tax liability and has not previously been registered with HMRC, it must be electronically registered within:
- 90 days of creation
- Two years of death if it is a will trust.
A trust which does not have a UK tax liability must be registered before 1st September 2022. After September 2022 the trust must be registered within the same deadlines as the trust with a UK Tax liability (within 90 days of creation or within two years of death if a will trust).
What information must be registered?
The information required covers the trust itself, the settlor, trustees and beneficiaries:
- Trust Details
- The full name of the trust
- The date on which the trust was set up (ie in the Settlor’s lifetime or on death)
- A description of the trust assets, including the value of the Trust at creation
- The trust’s tax residence
- Where the trust is administered
- The trustees’ contact address
- The full name of any advisers acting on behalf of the trustees for their tax affairs.
Beneficiary details should include:
- Full name
- Date of birth
- National Insurance Number or unique taxpayer reference (if any).
Exemptions from trust registration
HMRC has provided details of certain trusts which do not need to register unless, of course, they are liable to pay UK tax and these include:
- Trusts used to hold money or assets of a UK-registered pension scheme, such as an occupational pension scheme;
- Trusts used to hold life or retirement policies providing that the policy only pays out on death, terminal or critical illness or permanent disablement, or to meet the healthcare costs of the person assured;
- Trusts holding insurance policy benefits received after the death of the person assured, providing the benefits are paid out from the trust within 2 years of the death;
- Charitable trusts which are registered as a charity in the UK or which are not required to register as a charity;
- ‘Pilot’ trusts which were set up before 6 October 2020 and which hold no more than £100 – but pilot trusts set up after 6 October 2020 will need to register;
- Co-ownership trusts set up to hold shares of property or other assets which are jointly owned by 2 or more people for themselves as ‘tenants in common’;
- Will trusts which are created by a person’s will and come into effect on their death providing they only hold the estate assets for up to 2 years after the person’s death;
- Trusts for bereaved children under 18 or adults aged 18 to 25 set up under the will (or intestacy) of a deceased parent or the Criminal Injuries Compensation Scheme; and
- ‘Financial’ or ‘commercial’ trusts created in the course of professional services or business transactions for holding client money or other assets
Contact us to register your trust
We will register your trust with HMRC for a fixed fee of £300.00 plus VAT. To take advantage of this offer or to discuss whether your trust needs to be registered, please contact us on 0333 888 0404 or by email at [email protected].
