New requirements for trust registration

New registration requirements for trusts – what you need to do as a trustee, and by when?

Despite having had very little publicity or media exposure, HMRC will be rolling out a new Trust Registration Service from 1^st September 2022 which will require all trusts which were in existence on or after 6^th October 2020 (with very limited exceptions) to be formally registered online.

The consequences of not doing so by the 1^st September deadline could be costly for the trustees, as HMRC will have the power to issue penalties similar to those that they already issue for the late filing of tax returns and the late payment of tax.

There is no cut-off for the registration of historical trusts, and so the requirement to register applies not only to trusts created on or after 1^st September but also to: –

• trusts that existed on 6^th October 2020 irrespective of how long ago they were set up, and that are still in place now
• trusts that existed on 6^th October 2020 but have since been wound up
• trusts that have been set up after 6^th October 2020 irrespective of whether they are still in place now or have since been wound up,

unless of course they fall within one of the recognised categories of trust that are exempt from the requirement to register.  It does not apply, therefore, to: –

• trusts that were wound up before 6^th October 2020 and so were no longer in existence on this date

Trusts set up on or after 1^st September which don’t come within any of the recognised exemptions will need to be registered within the first 90 days.

For all registered trusts, the trustees will also be required to update HMRC about any changes affecting the trust.  This too must be done within 90 days of the relevant change occurring, and so it will no longer be affiliated with the tax return filing deadline which is likely to catch out a number of people.

Registration requires the trustees to appoint an agent or lead trustee to submit specific details about the trust, which will include: –

• Details of the trust assets, including addresses of UK properties.
• An approximate market valuation of assets held at the date that the assets were settled into trust.
• The identity of the original settlor(s), trustees, and any person exercising effective control over the trust.
• The identities/names of all beneficiaries who are either actual or potential beneficiaries.

Should you require our assistance in arranging for an existing trust to be registered prior to the deadline, please download and complete this questionnaire and email to [email protected] with as much information as you can and our team will contact you with a quote and to confirm the next steps.

If you have any further queries please contact a member of our trusts and estate management team or call 01737 854 500.