The Trust Registration Service’s deadline for the registration of many trusts in the UK is the 1st September 2022.
HMRC introduced new rules in October 2020 which extended the boundaries of trust registration. This is due to new rules being introduced by the ‘Money Laundering, Terrorist Financing and Transfer of Funds Regulations (2017)’, with the aim to improve the transparency of ownership of assets held in trust. This has not been very well publicised by HMRC, with many people only recently receiving letters from companies holding their trust, informing them of the need to register. If this applies to you, please read on to find out if you need to register your trust. You must register your trust if the following applies.
· The trust becomes, or is liable for taxes such as Income Tax, Capital Gain Tax, Inheritance Tax or Stamp Duty Land Tax
· The trust has no tax liability but is described as an express trust. These are created deliberately by a settlor in the form of a document such as a written deed or declaration of trust
* Express trusts include discretionary trusts, bare trusts, interest in possession trusts, and blind trusts. Most trusts are express trusts.
You do not need to register most non-express trusts, however, if they are liable to tax, as mentioned above, then they may need to register. If you are unsure on whether you need to register your trust by the 1st September 2022, please don’t hesitate to get in touch with us today on 01827 54944.