If you are a trustee of an existing trust or if you are creating a new trust, then you need to be aware of changes to the trust compliance requirements.

HMRC introduced an online Trust Registration Service (“TRS”) some time ago, but it will be fully implemented this year. Any new trusts created on or after 1 April 2020 must be registered with the TRS within 30 days of creating the Trust. The proposed deadline to register existing trusts is 31 March 2021, even if the trustees of an existing trust have historically filed self-assessment tax returns and update the register each year that the trust generates a UK tax liability.

The new rules are far reaching and require all “express” trusts to be registered, which could include trusts holding a non-income producing asset such as a house, life policies, shareholder protection policies or discounted gift trusts. There are limited trusts that are likely to be exempt, which should include certain trusts of land, trusts where more than one person owns a joint bank account, vulnerable beneficiary trusts, personal injury trusts and charitable trusts.

The information that you need in order to register a trust includes names, dates of birth, addresses and country of residence for all settlors, trustees and beneficiaries of the trust. The lead trustee will be issued with a specific reference number and trustees must notify HMRC if there are any changes to the trust.  

Trustees need to be mindful of the compliance requirements and time limits, as the consultation indicates that penalties will arise if deadline are missed.

If you are a trustee of an ongoing trust and you want to discuss how changes in trust compliance might impact the trust, then do not hesitate to contact our specialised Trusts team at Myerson.

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