Reminder: HMRC requirement to register your Trust by 1st September 2022
Introducing The Trust Registration Service
As I mentioned in a blog in March 2021, there has been a change to the current legislation surrounding Trusts, in that it is now a legal requirement for all Trusts to be registered with HMRC. This is called the Trust Registration Service (TRS).
The change is part of anti-money laundering regulations, which now covers most Trusts regardless of whether they pay tax or not.
For each Trust, the Trustees must nominate a 'Lead Trustee'. The Lead Trustee will be responsible for completing and updating the TRS and for any contact with HMRC. You should speak with the other Trustees of your Trust(s) and agree on the Lead Trustee.
The Lead Trustee must register your Trust(s) online here: https://www.gov.uk/guidance/register-a-trust-as-a-trustee and will need to set up a Government Gateway Organisation ID for each Trust they register. The Lead Trustee will need some information about the Trust to register, and you can download a checklist here showing the information needed. You can also download a How-To Guide here to help you through the registration process.
Register by 1st September 2022
Any Trusts already in existence that require registration need to be registered on the TRS by 1st September 2022 or within 90 days of being set up, whichever is the later. Any changes to the Trusts must also be recorded on the TRS. Whilst the Lead Trustee is the person who updates the TRS, all the Trustees have a duty to ensure that the Trust is registered and the TRS is updated with any changes (e.g. Trustees or Beneficiaries), generally within 90 days.
How to register
Trustees can use the online service https://www.gov.uk/guidance/manage-your-trusts-registration-service to view or make changes to their registered Trust. Failure to register a Trust or keep the TRS updated may result in a fine from HMRC. In addition, if the Trust is not registered, from September 2022 the Trustees may not be able to deal with any financial institution without showing a proof of registration.
If your Trust has any connections to other jurisdictions with similar requirements in place (for example where one or more Trustees live in an EU member state), you may need to register there too, and you should seek advice from a local tax specialist in that jurisdiction. Once you have completed your registration and have your Unique Reference Number (URN), please can you provide me with the details of this to ensure our records are kept up to date. If you have any questions about registering your Trust(s), check out our FAQ download here, or please do let me know.
Useful downloads
Trust Registration Service FAQs