HMRC’s Expanded Trust Registration Service

Regulations confirming the extension of the deadline for registering non-taxable trusts to 1 September 2022 have been put before Parliament.

HMRC’s expanded Trust Registration Service (TRS) opened to registrations by non-taxable trusts on September 2021. Under the new rules, all UK express trusts and some non-UK trusts are required to register with HMRC. This includes non-taxable trusts, unless the trust is specifically excluded.

The regulations amend the legislation to reflect the new timescales (as the original deadline was March 2022):

• The deadline for trustees to register non-taxable trusts is 1 September 2022.
• For trusts that fall within the scope of the TRS after 1 September 2022, the deadline is 90 days.
• Where the information held on the TRS changes, the trustees have 90 days from when they become aware of the change to update it.

Separately, HMRC has indicated that non-taxable trusts that were in existence on or after 6 October 2020, but which closed before 1 September 2021 (the date on which the expanded Trust Registration Service opened for registrations) will still need to register and then immediately close the trust record. HMRC has stated that it will take a proportionate approach if any such trust comes to its attention after the registration deadline on 1 September 2022.

HMRC has indicated that it will update its Trust Registration Service Manual with further guidance, which will be helpful to clarify some grey areas. In particular, at present it would seem that most UK nominee arrangements will need to be individually registered under the TRS, and it is to be hoped that HMRC will clarify the position.

Companies operating employee benefit trusts (EBTs), employee ownership trusts (EOTs) and other trust or nominee arrangements involving employees should consider any trust arrangements in existence on or after 6 October 2020, and (assuming that an exclusion does not apply) ensure that the trustees register them by 1 September 2022.

Please contact our team for further information.