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Trust Registration by 1 September 2022

Since 2017 most trusts with a UK tax liability have been required to register with HMRC’s Trust Registration Service (TRS). This is to provide greater transparency regarding individuals connected with trusts and the ownership of trust assets.

New legislation has been introduced requiring all UK trusts to be registered by 1 September 2022 whether they have a UK tax liability or not. Additionally, non-UK trusts may also need to register, for example if they have UK tax liabilities, have a UK resident trustee and enter into a business relationship with a UK business or acquire an interest in land in the UK.

New trusts with a tax liability need to register within 90 days of creation (the same time limit will apply to trusts with no tax liability from 1 September 2022 onwards) or two years of death in the case of a will trust.

Some trusts are excluded, for example:

  • Trusts imposed by legislation or a court order.
  • Estates (unless complex and meeting certain criteria).
  • Trusts created on death and existing for less than two years.
  • Charitable trusts.
  • Disabled person’s trust.
  • Bereaved children’s trust.
  • Pilot trusts set up before 6 October 2020 holding £100 or less (pilot trusts set up after 6 October 2020 will need to register).

Please note that there is no general exclusion for: –

  • Bare trusts.
  • Employee benefit trusts.

If you are the settlor, trustee or beneficiary of a trust which has not yet been registered please get in touch with us and we will advise regarding whether registration is necessary and, if so, the next steps.