Legal News | 4.08.22
It’s the final countdown – one month left to register your trusts
What is the Trust Registration Service?
Regular readers of our weekly newsletters may have seen us repeatedly refer to HMRC’s Trust Registration Service (“TRS”). TRS is a new online system by which trustees can register the trusts for which they are responsible with HMRC. Until recently, only certain taxable trusts needed to be registered. However, following new rules introduced in October 2020, virtually all UK express trusts (including bare trusts) must be registered by 1 September 2022.
What are the deadlines for registering trusts?
The rules vary depending on whether the trusts are taxable or non-taxable and when they were created.
• all non-taxable trusts in existence on 6 October 2020 must be registered by 1 September 2022;
• all non-taxable trusts created after 6 April 2020 must be registered within 90 days of being created, or on 1 September 2022 (whichever is later);
• all taxable trusts in existence on 6 October 2021 must be registered by 31 January after the tax year in which the tax liability occurred; and
• all taxable trusts created after 6 April 2021 must be registered within 90 days of being created, or on 1 September 2022 (whichever is later).
Which trusts do not need to register with TRS?
There are certain trusts which do not need to be registered. These include, but are not limited to –
• trusts created by a Will on death which are wound up within two years of death;
• UK registered pension schemes;
• charitable trusts regulated in the UK;
• pure protection life insurance policies paying out on death or critical illness;
• nominated cash deposit accounts held for children and Junior ISAs; and
• existing trusts created prior to 6 October 2020 with a value of less than £100.
If you would like to check whether a trust you are involved with needs to be registered, please get in touch with your usual contact or email firstname.lastname@example.org.