Home > Trust Registration Service Guidance & HMRC Updates – What you need to know

08 August 2022 | Private Client, Probate

Trust Registration Service Guidance & HMRC Updates – What you need to know

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What is the Trust Registration Service?

The Trust Registration Service (TRS) is an online service for trustees, or their agents (e.g. accountants or solicitors) to provide information to HMRC about their trusts. The register is the government’s way of checking Trusts are not being used to launder money or finance crime. Even if you are a trustee of a Trust, it’s possible you may never have heard of TRS. Don’t worry, this is likely because yours is a non-taxable Trust. Up until 2020 only Trusts that paid tax needed to be registered. For example, if a Trust holds rental property and earns income, that Trust is liable for Income Tax and must be registered with TRS under the old regulations.

In 2020 the UK Government introduced stricter Money Laundering Regulations significantly expanding the number of Trusts that must be registered with HMRC. These Regulations now state that all trusts must register on TRS, save for a limited list of excluded trusts. This means Trusts that don’t pay any tax still have to register on TRS.

Is my Trust excluded from the Requirement to Register on TRS?

Below is a list of types of Trusts that don’t need TRS registration. This is not an exhaustive list but contains the most common types of Trusts among our clients. Be sure to call our Private Client Team for advice if you think you have an excluded Trust.

  1. Trusts for bereaved minors and Age 18-to-25 Trusts. These Trust are created by a Will and, as long as they meet certain requirements, do not need to be registered on TRS
  2. Disabled Person’s Trust.
  3. A Trust created by legislation/court order.
  4. A Trust used to hold money or assets of a UK registered pension scheme — like an occupational pension scheme
  5. A Trust 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
  6. A Trust holding insurance policy benefits received after the death of the person assured — as long as the benefits are paid out from the trust within 2 years of the death
  7. A charitable trust that is registered as a charity in the UK or which is not required to register as a charity
  8. A ‘pilot’ trust set up before 6 October 2020 and holds no more than £100 — pilot trusts set up after 6 October 2020 will need to register
  9. A co-ownership trust set up to hold shares of property which are jointly owned by 2 or more people for themselves as ‘tenants in common’. All beneficiaries and trustee must be the same people. For example – husband dies with simple Life Interest Trust to wife, followed by capital going to son & daughter.  Wife, son and daughter are all Trustees and all on title so this Trust need not be registered,
  10. Bank accounts for under 16s.

How to Register a Trust on TRS

You can register the Trust yourself by going to https://www.gov.uk/guidance/register-a-trust-as-a-trustee. You will be asked to provide information about the Trust such as the names of all trustees and beneficiaries.

If you prefer, you can instruct our Private Client team here at Atkins Dellow to register your Trust for a fixed fee. We will complete the whole process for you and once the Trust is registered, HMRC will contact the lead Trustee directly.

What Information is Required?

As a Trustee, you’ll need to provide the following information to register:

  • the name of the trust
  • the date the trust was created
  • if the trust is an express trust or not
  • details about whether a non-UK trust has a business relationship in the UK
  • details about any UK land or property the trust has purchased
  • details of all beneficiaries
  • your name
  • your date of birth
  • your National Insurance number and address (if they’re a UK citizen)
  • your passport details and address (if they’re not a UK citizen)
  • your telephone number
  • your country of residence
  • your country of nationality

If the Trust is taxable, you’ll have to provide further information.

Deadlines for Trust Registration on TRS

Taxable trusts

Taxable trusts created on or after 6 April 2021 must be registered within 90 days of becoming liable for tax or on or before 1 September, whichever is later.

Non-taxable trusts

Non-taxable trusts that were created on or before 6 October 2020 must be registered on or before 1 September 2022.

Non-taxable trusts created after 6 October 2020 must be registered within 90 days of it being created or becoming liable for tax, or on or before 1 September 2022 (whichever is later).

Updating the Register

Once a trust is registered on the TRS, trustees will have 30 days from when they become aware of any changes to update the register.

For more information about any aspect of Trust management get in touch with our Private Client team today on 01284 767766.

Where to find us

We have offices in Bury St. Edmunds, Sudbury and London.

Please note this article is provided for general information purposes only to clients and friends of Atkins Dellow LLP. It is not intended to impart legal advice on any matter. Specialist advice should be taken in relation to specific circumstances. Whilst we endeavour to ensure that the information in this article is correct, no warranty, express or implied, is given as to its accuracy, and Atkins Dellow LLP does not accept any liability for error or omission. © Atkins Dellow LLP 2022

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