A Trust that is created by settlors often referred to as Expressed Trusts normally require registering with the Trust Registration Service (TRS). But do you have a non-taxable Trust that did not previously require to be registered?
TRS which was introduced in 2017 was initially set up to register beneficial ownership of those Trusts which had UK tax liabilities. Since then, certain non-taxable Trusts are now also required to be registered.
Common exemptions such as registered charity, UK pension schemes, Trusts created by life insurance policy, Child Trust Funds and Junior ISA’s are still exempt. However, this is not an exhaustive list.
To be completely sure you do not need to register a Trust, you must seek professional advice before deciding not to register.
What has changed with the Trust Registration?
Changes in rules now mean that HM Revenue & Customs (HMRC) wants all non-taxable Trusts, set up prior to 6 October 2020, to register the Trust online by 1 September 2022.
All none-taxable trusts that have been set up since 6 October 2020, must also register within 90 days or 1st September 2022 (whichever is later).
So remember any future non taxable Trust must be registered within 90 days.
Why do the non-taxable Trusts need to be registered?
It is strongly believed that this change in regulation has come about as an effort to tighten the money laundering regulations. The Government wants visibility over who owns assets across the UK.
How do I register?
You will need to create an account for the Trust to enable you to complete the online registration. This can be done by the Trustees as well as Agents.
You will need an Organisation Government Gateway ID for each Trust.
If you fail to register the Trust by the deadline of 1st September 2022, there will be a penalty. The penalty will range from £100 (for 3 months lateness) to hundreds and thousands.
What happens next?
Once set up it is down to the Trustees to ensure the TRS are regularly updated.
Any changes such as a change relating to the trustees, beneficiaries, change in tax position must be declared within 90 days. Again this is not an exhaustive list.
If a Trust is taxable you are required to make an annual declaration by 31st January each year.
Where can I find out more information?
You can find further information here and register the Trust as a Trustee.
How can Myers Clark help?
If you need a Trust to be registered Myers Clark can assist with the trust registration process.
We would be happy to help you register your Trust.
We will need various information from you with regards to the exact nature of the Trust.
If you would like us to relieve the burden, please contact Steffanie.Tiffen@myersclark.co.uk for further information.
Our fee for registering the Trust is a one-off fess of £150 plus VAT. If you are not existing client our fees are £300 plus VAT
The deadline is three weeks away so you must act fast to avoid penalties.
If you are not sure whether to register your non-taxable trust, seek advice. Get in touch with us and we will help you decide whether your non-taxable Trust needs to be registered.