The UK’s implementation of the EU Fifth Anti-Money Laundering Directive requires the majority of Trusts to be registered with HMRC by September 2022. The Trust Registration Service (TRS) became available on 1 September 2021, for non-taxable trusts to register with HMRC, as opposed to previously when just taxable Trusts had to be registered. This includes existing Trusts (many of which may have run for decades with little or no “professional” interference) and any future Trusts, which must now be registered within 90 days.
The new requirement catches many more types of Trusts; declaration of trusts where parents hold property for their children, and common “protection” trusts in Wills whereby a spouse has a life interest in a property, or a nil rate band trust is set up. It will be the duty of the Trustees to register these Trusts, however, everyone should be encouraged to question their own circumstances and whether there is anything that may be caught by these requirements.
HMRC have clarified the deadline for trustees to register non-taxable trusts, including all UK express trusts and some non-UK trusts holding UK property, due to delays with the service. Please contact us if you require further assistance.
The new deadlines are:
- Non-taxable trusts in existence on or after 6 October 2020: by 1 September 2022.
- Non-taxable trusts created after 1 September 2022: within 90 days.
- Trusts created within 90 days of 1 September 2022 have 90 days to register.
- Changes to trust details and/or circumstances: within 90 days of the change.
Certain specific trusts are excluded from registering as are bare trusts and deeds of trust between spouses in connection with Joint property ownership, as these are not classed as express trusts for these purposes.