Our records indicate that you are either the settlor and/or trustee of a trust and you need to take action to register the trust ahead of the 1st September deadline.
Why trusts need to be registered
HM Revenue & Customs (HMRC) launched the Trust Registration Service (TRS) in 2017, as part of the global drive to counter money laundering. Initially, trusts that had incurred a tax liability were required to be registered, although other trusts could be registered voluntarily.
On 1st September, 2021 HMRC introduced new rules which significantly widened the scope of which trusts must now be registered.
The deadline for registering a trust is 1st September 2022 – a little under 3 months from today.
Every individual trust arrangement must be registered separately, so if you are the trustee or settlor of more than one trust then each arrangement will need registering.
Your options
While the registration of a trust is the responsibility of the trustees, we have been working to try and find a simple solution for our clients to help complete this administrative task in time. As we see it, there are two options in order to register a trust as follows:
1. You can register the trust yourself
Trustees can register their trust directly by visiting the Government website here.
However, we have carried out some test runs for registering Trusts and we have found the process to be complex, time-consuming and a bit daunting. Therefore, as an alternative, we propose that you consider option 2.
2. You can appoint an agent to register the trust on your behalf
Some accountants and solicitors may offer this service, but we are happy to recommend Trustee Support Services Ltd, who have extensive knowledge and experience in this area. Their registration service is competitively priced (£200 per trust) and we feel this represents excellent value. Their website contains more information about the TRS and outlines the process they follow.
Having considered the options, we would recommend proceeding with option 2. This involves an application process, and you will need to have access to information and records of any trust in question.
With the Trustee Support Services’ application you can save pages along the way and return to the application later. You will need the trust information and the trust deed to complete the process and you can pay safely via PayPal or Stripe direct through the application process.
Don’t leave it too late
While the deadline of 1st September 2022 seems a long way off, we would encourage you to consider registering trusts sooner rather than later.
As we approach the deadline, we expect HMRC’s system to come under pressure as trustees rush to complete registration. HMRC has indicated that trustees who fail to register a trust requiring registration could be liable to fines and penalties.
If the trust was created in the last 12 months, or if the trust has had to pay a tax liability since 2017, it is likely that you will have already registered the trust with HMRC. We would encourage you to double check this with any accountants or solicitors that you may have worked with, or to check with us if you are unsure.
Don’t hesitate to get in touch if you have any questions. We will send further reminders over the coming months, ahead of the 1st September deadline.
ur records indicate that you are either the settlor and/or trustee of a trust and you need to take action to register the trust ahead of the 1st September deadline.
Why trusts need to be registered
HM Revenue & Customs (HMRC) launched the Trust Registration Service (TRS) in 2017, as part of the global drive to counter money laundering. Initially, trusts that had incurred a tax liability were required to be registered, although other trusts could be registered voluntarily.
On 1st September, 2021 HMRC introduced new rules which significantly widened the scope of which trusts must now be registered.
The deadline for registering a trust is 1st September 2022 – a little under 3 months from today.
Every individual trust arrangement must be registered separately, so if you are the trustee or settlor of more than one trust then each arrangement will need registering.
