Got A Trust? 99% of Trusts Must Now Register With HMRC

Published / Last Updated on 21/06/2022

Important Changes to the Trust Registration Service – Possible Action Required

As you may already be aware, new legislation came into force on the 6th October 2020 requiring all existing Trusts (with some exclusions) to be registered on the HMRC Trust Register by the 1st September 2022.

The following information relates primarily to Trusts used to hold investment bonds, which is the reason you are receiving this information.

HMRC's Trust Registration Service has Changed - Have you Registered your Trust?

What is the Trust Registration Service?

The Trust Registration Service (TRS) is a register of the beneficial ownership of Trusts.

The TRS was first set up in 2017, requiring trustees to register if their Trust was liable to pay the following taxes: income tax, capital gains tax, inheritance tax, Stamp Duty Land Tax (Land and Buildings Transaction Tax in Scotland) or Stamp Duty Reserve Tax.

New legislation has now come into force, requiring the majority of UK resident non-taxable Trusts in existence on or after the 6th October 2020 to be registered by the trustees on the HMRC Trust Registration Service before the 1st September 2022.

Trusts created after 1 September 2022 must register within 90 days.

Trustees will also need to update the Trust Register, with any changes, within 90 days from when they become aware of any change.   Such changes could be a change of trustee, addition of a beneficiary or appointment of policies to Bare Trust.

Where trusts were in existence on 6 October 2020 but have subsequently closed, the trustees will still need to register the Trust, but can close the Trust record immediately.

If you do not register your Trust, you could receive a fine from HMRC.

Can Roberts Clark Register the Trust on My Behalf?

Unfortunately, no.  To register a Trust on behalf of Trustees as their agent, it is necessary to create an Agent Services Account (ASA).  However, only certain types of adviser is eligible to set up an ASA and act as an agent.

It is only possible to set up an ASA if your business operates as an accountancy service provider.   You must also be registered with a supervisory authority such as the ICAEW, CIOT or SRA or with HMRC for anti-money laundering https://www.gov.uk/anti-money-laundering-registration or have applied to HMRC for supervision.

A financial advisory practice is not therefore able to create an ASA or act as an agent on the current form of TRS.

What Information does HMRC Require?

As a trustee, you’ll need to provide HMRC with the details of:

  • The Trust
  • The Settlor
  • The Trustees
  • The Beneficiaries
  • Any individual who has control over the trust, in some instances referred to as protectors.

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