Important changes mean that all trusts must be registered with HM Revenue and Customs (HMRC) via their Trust Registration Service by Thursday 1st September 2022.
The Trust Registration Service, or TRS was created in 2017 in compliance with the EU’s Fourth Money Laundering Directive. However, the Fifth Money Laundering Directive (5MLD), implemented by the United Kingdom in 2020 expanded the TRS’s scope.
“Formerly, it was only those trusts with a taxable income that needed to be registered with the TRS but from September, trusts that do not have taxes due will also need to be registered” says Joanne Fisher, Chartered Financial Planner.
The changes will include the need for a ‘Lead Trustee’ who will take responsibility for the registration (of the trust). This person will have to register the trust correctly on the HMRC government gateway.
The types of trust that will be affected include:
- Bare or Absolute trusts
- Discretionary Gift trusts
- Will trusts still in force after 2 years from date of death
Also:
- All non-taxable trusts in existence on or after 6 October 2020 must be registered (unless specified as exempt)
- Non-taxable trusts created after 1 September 2022 will have 90 days to register
- Changes to registered trust details or circumstances must be notified within 90 days of the change
“Please be aware that this list is not exhaustive” continues Joanne “we always recommend that you discuss your specific circumstances with a qualified professional”
More information and a link to the Trust Registration Service can be found at:
https://www.gov.uk/guidance/manage-your-trusts-registration-service
The Financial Conduct Authority does not regulate trust advice.
The content of this blog is for information only and must not be considered as financial advice. We always recommend that you seek independent financial advice before making any financial decisions.
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Find out more about Joanne Fisher here
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