Since 6 October 2020, new rules were introduced which extend the scope of the trust register meaning that more trusts will need to register with HM Revenue & Customs.
The trust register was introduced five years ago to make the beneficial ownership of assets held in trust more transparent.
While many trusts have had to sign up using the TRS already, the remit of the trust register is expanding to include a greater number, and type, of trusts than ever before.
What changes are being made to the Trust Register?
Since October 2020 the requirement to register using the TRS will apply not only to trusts with a tax liability but to all trusts.
This includes trusts set up many years ago, which may have been forgotten about or left dormant, but which remain extant.
The deadline for registration of non-taxable trusts has already been extended from 10 March 2022 to 1 September 2022, so time is running out!
Will your trust need to register?
If you operate a trust the answer is likely to be yes. Under the changes, only a limited number of exemptions exist.
Some other less common types of express trusts that are set up for particular purposes are also excluded from registration unless they are liable for tax.
Be aware that this change to the rules means that for the first time some offshore trusts will also need to be registered.
How do I register using the Trust Registration Service?
To comply with the registration requirements, trustees will need to input details of the settlor, trustees and beneficiaries into an online portal.
At a minimum, trustees will need to confirm annually that there have been no changes and notify via the TRS of any changes within 90 days.
Some trusts may have already completed a 41G form containing some of this information. However, HMRC has confirmed that this did not collect sufficient evidence to meet the requirements under the new rules.
Therefore, those trusts which registered separately with HMRC, must register and resubmit information via the TRS.
HMRC strongly recommends that trustees familiarise themselves with the TRS system and obtain the information required to register in advance of the deadline in September.
Need help with trust registration? Speak to our team at Rotherham Taylor Accountants
