Senior solicitor Kelly Chandler, in our leading Wills, Probate, Tax & Trusts team, explains the recent changes to HMRC’s Trust Registration Service (“TRS”).
Following recent changes to HMRC’s Trust Registration Service (“TRS”), many trusts which were previously exempt from registration will now need to be registered (save for some limited exceptions) by 1 September 2022.
The TRS is now the only way to register a trust with HMRC and obtain a Unique Taxpayer Reference. It is a wholly online process and there is no provision to register or update using paper documents.
Express trusts in existence at 6 October 2020 or later, even if they have subsequently been wound up, must be registered by 1 September 2022. Any trusts established after this date must be registered within 90 days.
HMRC also require that any material changes to an express trust (e.g. change of trustee) must be reported on the register within 90 days. The register must also be reviewed annually for taxable trusts, even if there are no changes and confirmation of the review should be included in the trust tax return.
The responsibility for registering a trust lies with the trustees and requires trustees to submit to HMRC information about the trustees, beneficiaries and settlors. It is not a public record but interested parties can access the information in limited circumstances.
Trustees may become liable for fines and penalties if a trust is not registered before the deadline or updated within the prescribed time limits.
We recommend that trustees act without delay to determine whether their trust is required to register with the TRS.
If you would like assistance with reviewing your trust or with registering your trust with the TRS then we would be happy to act for you.
Our Wills, Probate, Tax & Trusts team can advise on the above.
For further information or legal advice, please contact law@blandy.co.uk or call 0118 951 6800.
This article is intended for the use of clients and other interested parties. The information contained in it is believed to be correct at the date of publication, but it is necessarily of a brief and general nature and should not be relied upon as a substitute for specific professional advice.
