HMRC's Trust Register has now been extended and requires virtually all trusts to register on its service before 1 September 2022.
The new rules apply to all "express trusts", which for these purposes include discretionary trusts, bare trusts, nomineeships and land held by co-owners (among others) with some limited exceptions.
Purpose
The primary aim is to establish the true ownership of assets, and to prevent the concealment of criminal wealth.
Types of Trust
Trusts that now need to be included are:
- all UK express trusts, whether taxable or non-taxable, and
- non-UK trusts where:
- There is a UK resident trustee and the trust enters into a business relationship, or
- The trust acquires an interest in land in the UK (residence of trustees irrelevant).
The regulations apply to all trusts that were in existence on or after 6 October 2020 even if those trusts have now ceased.
Trust Registration Service
The registration of a trust via the above service is not particularly onerous.
The information required includes details about when the trust was created, the settlor, the trustees, the beneficiaries and the assets of the trust.
Deadlines
All relevant trusts need to be added to the register on the later of
- 1 September 2022, or
- 90 days from creation, or
- 90 days from when something changes within the trust
There are potential penalties if a trust is not registered / changes updated. More guidance will be made available from HMRC in due course.
Access to the register – how is the information used?
HMRC have confirmed that the Trust Register is a confidential register for government agencies such as MI5 and HMRC. It is not accessible by third parties.
The information will remain on the Register for 10 years from the last time it was updated or when it was formally closed.
More help?
Please do contact your usual Wilsons contact if you require further guidance on this or would like to register a trust / update a trust's details. Alternatively please contact Imogen Lea or use the form on this page.
Further information can also be found by following the link below:
