HM Revenue and Customs (HMRC) Trust reporting requirements deadline approaching

UK express trusts and some non-UK trusts in existence on or after 6 October 2020 must be registered with the UK Trust Registration Service (TRS) by 1 September 2022.

What is the Trust Registration Service (TRS)?

The TRS is an online system by which trustees (administrators of the trust) can register the trust that they are responsible for with HMRC. It was introduced to satisfy the requirements of The Fourth and The Fifth Money Laundering Directives (4MLD and 5MLD). The 4MLD and 5MLD were introduced by the EU to prevent trusts being used for money laundering and/or terrorist financing.

Which trusts need to be registered?

All UK 'express' trusts are now required to register under TRS unless specifically excluded, irrespective of their tax liabilities.

What is an express trust?

An express trust is a trust that was deliberately created by a settlor rather than, for example, by statute or court order.

What are the deadlines for trust registration and updating the TRS?

The deadline and timescales for the registration of existing or new trusts are as follows:

  • 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.

Why do I need to register my trust?

There is a legal obligation for trustees to register the trust, but some trusts are exempted. HMRC will enforce penalties if you do not register your trust, or you don't keep the details on the register up to date.

Do offshore trusts have to be registered with TRS?

Offshore trusts must be registered with the TRS if they have at least one UK resident trustee. This also applies to non-UK registered trusts that acquire land or property in the UK. Trusts that are already registered in another EU Member State will be automatically exempt from UK registration.

How can we assist?

The Lawrence Grant team has experience in assisting Trustees with reviewing their reporting obligations and can assist with the registration process making a burdensome task easier for you. Please contact Lawrence Grant or call on 0208 8617575.

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