Trust Registration Service (TRS)
The TRS is an online service for Trustees to comply with their registration obligations under the Money Laundering Regulations.
New rules have come into force that require all UK trusts, apart from a few exceptions, and some non-UK trusts in existence on or after 6th October 2020 to register with HMRC by 1st September 2022, including trusts that have closed since that date. Previously, only trusts that paid certain taxes were required to register with the TRS.
Trustees have obligations to register most types of trust with HMRC for anti-money laundering/anti-terrorist purposes via the TRS. HMRC have to be notified of certain details in relation to the trust (for example, the name of the Trustees, the name of the beneficiaries, and the assets in the trust). We would draw your attention to the government guidance available at: Register a trust as a trustee - GOV.UK (www.gov.uk)
From September 2022, non-taxable trusts (unless exempt) must be registered with 90 days of the trust being created and changes to the trust details or circumstances must also be registered within 90 days of the change.
Please note that failure to register a trust, which is not exempt, will result in financial penalties for which the Trustees will be personally liable and could amount to a breach of your Trustee duties.
Trusts excluded from being registered, unless liable to pay UK tax:
- Will trusts until two years after the death has lapsed.
- Trusts meeting certain legislative requirements eg bereaved minor trusts and 18-25 trusts set up by a Will.
- Bank accounts for minors – please note that investments such as stocks and shares do not qualify for the exemption.
- Co-ownership trusts for jointly held property where the Trustees and beneficiaries are the same people.
- Certain policy trusts.
- Existing trusts with a value of less than £100 created prior to 6th October 2020.
- Pension scheme trusts.
- Charitable trusts.
- The full list of exempt trusts is available at gov.uk.
The legislation around the registration of trusts is complex and if this is of a concern to you, I would advise obtaining specialised advice from a trust specialist. Please note that we do not currently have a trust specialist available at this firm, however, we can recommend someone to you.
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