Trust Registration Service

What Is The Trust Registration Service?

HMRC’s Trust Registration Service (‘TRS’) has been in existence since 2017. It was broadly a register of express trusts which are liable to pay income tax, capital gains tax or inheritance tax.

Under the 5th Money Laundering Directive the trusts that need to register on the TRS has been extended. Trusts requiring registration now include all express trusts (with a few exemptions) whether the trust is liable to pay tax or not.

The TRS provides an online route for trusts to be registered and to assist Trustees in complying with their trustee obligations.

What Is An Express Trust?

There is no definition of ‘express trust’ in the Money Laundering Regulations 2017 or the relevant EU Directives. However, HMRC has stated that an express trust is one that has been deliberately created by a settlor, usually in the form of a written document, such as a Will, a Deed or a declaration of trust.

Who Is Responsible For Registration?

Trustees of trusts have a legal responsibility to register their trust with HMRC through the TRS.

Where there are multiple Trustees, it is for the trustees to decide who will be the lead trustee to complete the registration process.

All Trustees are equally legally responsible for the trust and the ‘lead’ Trustee is simply the main point of contact for HMRC. If, for example, there are three Trustees, this would be recorded as one lead Trustee and two additional Trustees.

When Do Trustees Need To Complete And Submit The Registration?

All trusts currently in existence need to be registered by 1st September 2022.

As a general rule trusts established under the Will of a deceased person have two years from the date of death to register any trust created under the deceased’s Will.

Trustees who have not registered the trust within the timescales will face a penalty from HMRC.

For all new trusts there is a 90 day window for registration from the trust being established.

Any trust that was closed after the 6 October 2020 still needs to be registered and then listed as closed on the TRS.

What Happens Next?

Once registered, it is the responsibility of the Trustees to ensure that the information held on the register is kept accurate and up to date. Trustees will have 90 days from the date they become aware of any changes to ensure that the register is up dated.

How Do Trustees Access The Trs?

The registration of the trust can be carried out by the lead Trustees using the following link www.gov.uk/guidance/register-a-trust-as-a-trustee

The information required to register a trust is extensive, therefore many Trustees have asked us to register their trust using our HMRC Agency Account. We can register the trust on behalf of the lead Trustee and thereafter deal with any amendments to the trust details as and when required.

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