You may have seen some headlines recently about the Trust Registration Service (TRS), which was established by HMRC in 2017.
The TRS is a register of the beneficial ownership of trusts and new rules introduced on October 6, 2020, extended the scope of the trust register.
Trustee clients need to be aware of their obligation to register with the TRS by September 1, 2022.
The wider scope of the registration requirement has led to concerns that some trustees will be caught out.
Some arrangements, popular among parents and grandparents, such as bare trusts and bank accounts for minors, are not exempt from the new arrangements and must therefore be registered by the deadline.
All UK express trusts (usually created with a written deed) and some non-UK express trusts should be registered with HMRC, including non-taxable trusts, unless the trust is specially excluded due to its characteristics.
Trusts that need to be registered are: –
- Non-taxable trusts in existence on or after October 6, 2020
- Non-taxable trusts created after September 1 2022
- Changes to the trust details and/or circumstances, within 90 days of the change
The team at Phillip Bates & Co Financial Services is already in contact with many clients affected by these changes, but please do get in touch if you think that you may be affected by these changes.