The Trust Registration Service (TRS) was setup in 2017 and all UK Express Trusts liable to pay UK tax were required to register.
New rules were announced in October 2020 that require all UK trusts, apart from a few exceptions, and some non-UK trusts in existence on or after 6 October 2020, to register with HMRC by 1 September 2022, including trusts that have closed since that date. The new rules have expanded the TRS to all UK trusts including ones not liable to tax unless the trust is specifically excluded.
What are the deadlines for trust registration and updating the TRS?
The deadline and timescales for the registration of existing or new trusts are:
- Non-taxable trusts in existence on or after 6 October 2020 must be registered by 1 September 2022 (even if they are now closed).
- Non-taxable trusts created after September 2022 must be registered within 90 days.
- Changes to the trust details or circumstances must be registered within 90 days of the change.
- Personal representatives (the person(s) responsible for managing the deceased’s estate) need to register with HMRC by 5 October after the tax year when the estate starts to receive income or has chargeable gains on which tax is payable if the estate is classed as complex and/or been administered for over two years.
- The registration deadline for taxable relevant trusts set up before 6 April 2021 is on or before 31 January after the tax year in which the tax liability occurred (or by 5 October after the end of the tax year for a first-time liability to Income Tax or Capital Gains Tax).
- For trusts set up after 5 April 2021 the deadline has been extended to 1 September 2022. Taxable relevant trusts set up on or after 4 June 2022 must be registered within 90 days of the trustees becoming liable to pay UK taxes. This also applies to non-taxable trusts. Once a trust is registered on the TRS the trustees will have 90 days from becoming aware of any changes to update the register.
Which trusts are excluded from the TRS?
A full list of trusts not required to register can be found on GOV.UK.
Trusts excluded from the requirement to register, include:
- charitable trusts
- pension schemes
- existing trusts with a value of less than £100 created prior to 6 October 2020
- will trusts that are wound up within two years of death
- policy trusts paying out on death or critical illness
How do I register a trust with the TRS?
The lead trustee can register the trust on GOV.UK
Trustees must enter details about:
- the lead-trustee
- the co-trustees
- the settlor
- the beneficiaries
We can advise you on your tax obligations, assist with any queries or issues you have and offer solutions to help you achieve a more tax optimal position.
For help and advice, please contact [email protected] or call 01527 558539. Our full service offering is available to help you achieve tax compliance and a tax optimal situation.