Protection Trusts Exempt from Trust Registration Service
Published / Last Updated on 28/01/2020
Previously, as part of the 5th Money Laundering Directive, the Government, via the Treasury, had said that non-investment based trusts must register with HMRC under the Trust Registration Service (TRS) as well as those life insurance policies in trust without any investment element.
Now, a u-turn is that trusts that are not going to potentially raise a liability to tax need not register.
This means that pure protection insurance policies where the benefits are placed in trust (including company life insurance plans) will now be exempt from registering with the TRS but life insurance policies with an investment element 'behind the scenes' such as flexible whole of life or unit linked term assurance may still have to register in addition to normal investment plans in trust.
