Important change in government legislation with regards to Trusts.
There has been a change in government legislation, which may have a relevant effect for many Trusts. Previously, the government only required Trusts with tax liabilities to be registered with HMRC. However, more Trusts will now need to register via the Trust Registration Service, irrespective of tax liability.
Trustees are responsible for registration which can be done using the HMRC online portal, found here: www.gov.uk/guidance/manage-your-trusts-registration-service. Relevant existing Trusts must register by 1 September 2022 or face potential HMRC fines. Trustees will also need to update the online register with future changes, including if Trusts close.
Individuals linked to the Trust and resident outside of the UK may also need to meet local Trust registration requirements. Comprehensive HMRC guidance on when, how and who should register is at: www.gov.uk/guidance/register-a-trust-as-a-trustee.
In September, the Trust Registration Service (TRS) finally opened for the registration of non-taxable trusts. As a quick recap, the regulations were brought into effect in order to comply with a change in the anti-money laundering regulations. This means most UK express trusts (created by an individual) are now required to register the details of their beneficial owners (i.e their settlor(s), trustees and beneficiaries).
Maintaining and updating the trust records on the TRS
From 2022 onwards, updates will be necessary each time there are changes to the beneficial ownership information, such as trustees or beneficiaries.
The penalties on late registration/annual declaration
HMRC may issue a payment penalty if the trust has failed to register by the deadline.
A Trustee can register the Trust using the above link for the HMRC online portal, however if you are unable to register the Trust, Complete Estate Protection offer a Trust Registration service. This will ensure that you comply with new government regulations.
If you would like us to register the Trust on your behalf, please contact us on 01642 493101 or email info@ceprotection.com.
