What trusts must be registered?
If you are a trustee of an existing trust or if you are creating a new trust, then you need to be aware of wide-ranging changes to the requirements to register a trust with HMRC.
It used to be the case that only trusts incurring a tax liability had to be registered with HMRC, but the changes mean that most trusts will now have to be registered with HMRC using their online Trust Registration Service.
Although some trusts are excluded from this requirement, such as certain Will trusts and life insurance trusts, the new rules will require action from many trustees, including those who have had little previous interaction with the trust.
Is there a time period to register a trust?
There is a transitional period for existing trusts, which confirms that some non-taxable trusts already in existence on 9th February 2020 have until 10 March 2022 to register the trust with HMRC, but all other trusts must now be registered within 30 days of the trust’s creation or within just over two years of the date of death.
What information will I need?
The information that you need to register a trust includes names, dates of birth, addresses and residency 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.
All trustees need to be mindful of the compliance requirements and time limits, as penalties will arise if deadlines are missed.
What next steps should I take?
If you are a trustee of an ongoing trust and you want to discuss how changes in trust compliance might impact the trust and your duties as a trustee, then do not hesitate to contact our specialised Trusts team at Myerson on 0161 941 4000 or via email.