Act now

Act now to register your trust!

Under a new Money Laundering Directive which came into effect in the UK on 6th October 2020, the reporting obligations of Trusts to HMRC has been vastly extended.

Prior to this date, only Trusts which incurred a liability to tax were required to register information about their trusts on HMRC’s online portal the Trust Registration Service (TRS).

Under the new directive, the obligation to register, keep details accurate and make an annual declaration now applies to most nontaxpaying trusts, regardless of whether they are liable to pay any tax. There are only a very limited number of exemptions to this rule.

Deadlines to register

All existing UK express trusts and some nonUK express trusts must be registered by 1st September 2022.

Any new UK express trust established on or after 1st September 2022 must be registered within 90 days of creation, save for specific exclusions.

Penalties for failure to comply

It is your responsibility as Trustee to ensure that the Trust is registered on the TRS before the deadline.

Prior to 6th October 2020 penalties of between £100 and £300, or 5% of the tax owed (whichever was greater) were imposed for the late registration of trusts. We anticipate that HMRC will continue to issue penalties for late registration or failure to register trusts.

How we can help

Trusts can be legally and technically complex. For advice and guidance on the steps you need to take to meet your Trustee obligations and register your trust, please contact a member of our Private Client team today.