Legal
HAVE YOU REGISTERED YOUR TRUST? Emma Coate, Associate Solicitor, Private Client Team, Mogers Drewett
H
istorically only tax-paying trusts needed to formally register with HM Revenue & Customs (HMRC) using their online Trust Registration Service (TRS). As part of the continuing global effort to enhance tax transparency, the Fifth Money Laundering Directive (5AMLD) significantly extends the scope of the TRS. From 1st September 2022, it is estimated that up to ten times as many trusts including small or non-tax-paying trusts will now need to register who previously hadn’t or risk penalties being imposed on the trustees. What needs to be done?
The online TRS system, accessed via the Government Gateway, now requires trustees or their agent to enter basic details about the trust, including the persons involved (settlors, trustees and beneficiaries). The TRS must also be updated regularly with any changes to the trust, for example, a change of trustees. Exemptions
There are some trusts that will continue to be exempt from registration, but the list is small. It includes life policies that are held in trust, charitable trusts which 130 | Sherborne Times | June 2022
are registered as a charity in the UK, or which are not required to register as a charity, and co-ownership trusts set up to hold shares of property or other assets which are jointly owned by 2 or more people for themselves as ‘tenants in common’ (but not where anyone else owns an interest in that property). Trustee responsibilities
If you are a trustee, you are responsible for registering the trust with the TRS. Failure to do so is likely to result in penalties being charged by HMRC, so it is important that you are aware of your obligations and make sure you have complied by the deadline of 1st September 2022. New trusts will have 90 days in which to register with the TRS. Once registered, trustees will have 90 days from when they are made aware of any changes to update the details. Next steps
If you are unsure whether you need to register a trust or you would like assistance in registering the trust with the TRS then please contact your solicitor. mogersdrewett.com
