Changes To The Registration of Trusts

Many Trusts Now Have To Register With HMRC

Under European anti-money-laundering directives, to which the UK is still committed, trusts now need to be registered with H M Revenue and Customs. Before 6th October of last year, trusts only had to register if they were taxable – i.e. liable to pay tax: income tax, capital gains tax, inheritance tax or stamp duty land tax - in any year.

However many more, non-taxable, trusts will now need to be registered. Details of the registration service can be found at https://www.gov.uk/gidance/register-a-trust-as-a-trustee

The requirements are quite complicated and the list below is just a snapshot but, for example, you will need to register if:

  • You are the Trustee of a trust under which someone occupies all or part of the family home;
  • You are holding funds for others (including minor children) in your name;
  • You are registered on the title of a property held jointly with others where there are more joint owners than are named on the title – this can include some declarations of trust.

What information is required by the Trust Registration Service?

  • the name of the trust
  • the trust address and telephone number (usually that of the lead trustee or agent)
  • the date the trust was established
  • details of the trust assets, including addresses of properties, and an estimated market valuation of assets held at the date that the assets were settled; and
  • identity details:

             - full name and address

             - date of birth

             - National Insurance number (or passport /ID number if no NI) number)

These details are required for the settlor, all trustees, and either specifically named beneficiaries or beneficiaries to whom benefits have been paid.

Where there is a class of beneficiaries, for example “children”, “grandchildren”, as in a discretionary trust these do not have to be individually registered (unless they receive a benefit, as above).

When do I need to register?

Non-taxable trusts have until 1st September 2022 to register. Trusts created after 1st September 2022 will have to be registered within 90 days of being set up.

What happens if I don’t register in time?

There are penalties for late registration: £100 if within 3 months of the due date; a further £200 if between 3 months and 6 months after; and a further £500 if more than 6 months late. These penalties are personal liabilities of the trustees.

How can Talbots help?

If you need further advice or would like us to register the trust for you please contact Jodi Flint on 0800 118 1500 or email jodiflint@talbotslaw.co.uk