Previously a lot of trusts had to be registered with HMRC. This is no longer the case as they must now be enrolled with the Trust Registration Service (TRS).
Chartered legal executive Victoria Harcourt, from our Wills, Probate and Trusts Team discusses which trusts need to be registered and the obligations placed on trustees to keep the information up to date.
What is the TRS?
The TRS is an online system. It was created five years ago as a result of anti-money laundering regulations.
The TRS asks trustees to provide all relevant information about the trust, including its assets, trustee and beneficiary.
However, changes to the anti-money laundering regulations now means that many more trusts will need to register.
This replaces the previous paper-based process.
Do I need to register?
If you are a trustee, you will need to read the following to see whether you need to register your trust.
All express trusts (even those not taxable) need to be registered unless they are excluded.
Every taxable trust must be registered.
Deadlines are dependant on whether the trust is taxable and when it was initiated.
Which trusts do not need to be registered?
The following trusts are excluded, unless they have a UK tax liability:
- UK registered pension scheme — this would include an occupational pension scheme.
- A trust for holding life or retirement policies. This is providing the policy only pays out on death, terminal or critical illness, permanent disablement, or to meet the healthcare costs of the person assured.
- A trust holding insurance policy benefits received after the death of the person assured — as long as the benefits are paid out from the trust within two years of the death.
- A charitable trust (registered in the UK) or which is not required to register as a charity.
- A ‘pilot’ trust set up before 6 October 2020 and holds no more than £100. Pilot trusts set up after this date must register.
- A co-ownership trust set up to hold shares of property or other assets which are jointly owned by two or more people as ‘tenants in common’.
- A will trust created by a person’s will. This comes into effect on their death providing they only hold the estate assets for up to two years after the person’s death.
- A trust for bereaved children under 18 (or adults aged 18 to 25) set up under the will or intestacy of a deceased parent.
- Trusts set up for personal injury compensation or under the Criminal Injuries Compensation Scheme.
- A ‘financial’ or ‘commercial’ trust created during professional services or business transactions for holding client money or other assets.
What if I registered with HMRC years ago?
Even if you believe your trust was registered with HMRC using the 41g form and you received a UTR, you will still need to register with TRS.
What information is required?
Read on to discover the details you will need to provide:
- Trust details – its name and the date it was established.
- Trustees – your appointed lead trustee’s details including their name, date of birth, national insurance number, phone number, nationality, passport details (if not a UK citizen) and country of residence.
- Settlor – name, date of birth, date of death (if the trust was created upon death), nationality and country of residence (or last residence).
- Beneficiaries – Named and classes of beneficiaries.
- Details of assets held – addresses of properties and an estimated market valuation of assets held
How do I register?
Marsden Rawsthorn can act as your agent and oversee registration on the TRS if you have a new trust or one that is now required to be enrolled on the TRS.
How we can help
Please get in touch with our Wills, Probate and Trusts Team to see how we can assist or to discuss specific circumstances, on 01772 799 600.