Client Newsletter

New Legislation: Trust Registration Service

New legislation will come into force on 1 September 2022 regarding the registration of trusts with HMRC. These changes will mean that some trusts which previously would not have been registered with HMRC will now need to be registered. Some examples of trusts that will need to be registered that previously did not are:

  • All UK express trusts which do not incur UK tax (which are not in the excluded list below). These are trusts created deliberately by a settlor.
  • Bare trusts. These are set up when an individual gives a beneficiary absolute right to both capital and income, but the property is still under the name of the individual (this does not include bank accounts for children, but can include any other type of asset).
  • Non-UK trusts for which one of the following applies:
    • It acquires an interest in UK land
    • If the trust holds UK assets or has UK sources of income and is liable to UK tax.
  • Non-UK trusts:
    • Which are entering into a new business relationship with an entity in the UK which is required to complete a customer due diligence check (for example: Lawyers, Accountants, Estate Agents, Banks); and
    • At least one trustee is UK resident; and
    • The beneficial owner information is not held on a central register in an EEA country.

There are many exclusions (some of which are listed below), however if you are unsure please contact Alec Fowler: a.fowler@twpaccounting.co.uk for a comprehensive list.

  • Charitable trusts.
  • Child trust funds or Bereaved minor trusts.
  • Disabled person trusts.
  • Non-UK resident trusts where the above situation does not apply.
  • Co-ownership Trusts for UK land, bank accounts or shareholdings.
  • Pension scheme trusts.
  • Authorised unit trusts.
  • Trusts incidental to commercial transactions.
  • Trusts of life insurance policies if they are solely for the payment of retirement or death benefits.
  • A life insurance policy (as above) where the benefit is only received upon the death of the life assured individual, where the benefits are paid to the beneficiary within two years of the assured individual’s death.

If you think your trust will need to be registered under the new rules or are not sure whether a trust you are associated with will need to be registered we encourage you to contact Alec Fowler: a.fowler@twpaccounting.co.uk or call 01932 704725 to speak with him directly.