HMRC Trust Registration Service (TRS) – A Comprehensive Guide

What Is the Trust Registration Service (TRS)?

The Trust Registration Service (TRS) is an online platform established by HM Revenue & Customs (HMRC) to comply with the EU's Fourth Money Laundering Directive. It serves as a central register for the beneficial ownership of trusts and certain other entities, aiming to enhance transparency and combat money laundering and terrorist financing.

Who Needs to Register a Trust?

Trustees must register their trust with HMRC if the trust:

• Is a UK express trust, unless specifically excluded.
• Is a non-UK express trust that:
  • Acquires land or property in the UK.
  • Has at least one trustee resident in the UK and enters into a business relationship within the UK.

Additionally, a non-UK resident trust must register if it becomes liable for tax on UK assets or income.

Exemptions: Certain trusts are exempt from registration, including:

• Trusts holding money or assets of a UK-registered pension scheme.
• Trusts holding life or retirement policies that only pay out on death, terminal or critical illness, or permanent disablement.
• Charitable trusts registered as charities in the UK.
• 'Pilot' trusts set up before 6 October 2020 holding no more than £100.
• Co-ownership trusts set up to hold shares of property or other assets jointly owned by two or more people as 'tenants in common'.
• Will trusts that come into effect on death and only hold the estate assets for up to two years after death.
• Trusts for bereaved children under 18 or adults aged 18 to 25, set up under the will (or intestacy) of a deceased parent or the Criminal Injuries Compensation Scheme.

When to Register Your Trust

• Taxable Trusts Created On or After 6 April 2021: Must register within 90 days of becoming liable for tax or by 1 September 2022, whichever is later.
• Taxable Trusts Created Before 6 April 2021: Must register by 1 September 2022.
• Non-Taxable Trusts: Must register by 1 September 2022.

Failure to register within these time limits may result in penalties.

Information Required for Registration

To register a trust, you'll need:

• Trust Details:

  • Name of the trust.
  • Date the trust was created.
  • Details about whether the trust is an express trust and if it has any tax liabilities.

• Trustees:

  • Full name.
  • Date of birth.
  • National Insurance number (if UK resident) or passport details (if non-UK resident).
  • Contact details.

• Settlor (the person who created the trust):

  • Full name.
  • Date of birth.
  • National Insurance number or passport details.
  • Date of death (if applicable).

• Beneficiaries:

  • Full names (for named beneficiaries).
  • Description of the class of beneficiaries (if not individually named).

• Other Individuals Involved:

  • Details of any protectors or other individuals with control over the trust.

For taxable trusts, additional information such as the trust's Unique Taxpayer Reference (UTR) and details of assets placed into the trust at the time of creation are required.

How to Register a Trust

1. Set Up a Government Gateway Account:

   • Visit the HMRC Trust Registration Service and select 'Register now'.
   • Choose 'Create sign in details' and provide your email address.
   • Follow the instructions to create a password and set up recovery details.
   • Choose 'Organisation' when asked to select the type of account.

2. Register the Trust:

   • Sign in using your Government Gateway user ID and password.
   • Provide the information outlined above about the trust, trustees, settlor, and beneficiaries.
   • Review and submit the registration.

After submission, HMRC will review the information and, if everything is in order, issue a Unique Taxpayer Reference (UTR) for the trust. This process can take up to 15 working days.

Maintaining and Updating Trust Details

Trustees are responsible for ensuring that the trust's details are kept up to date. This includes:

• Updating Information: If there are changes to the trust's details, trustees must update the TRS accordingly.
• Annual Declaration: For taxable trusts, trustees must declare annually that the details held on the register are accurate and up to date.
• Closing a Trust: If the trust is wound up or otherwise ceases to exist, trustees must update the register to reflect this.

Penalties for Non-Compliance

Failure to register a trust or keep the information up to date can result in penalties, including fines of up to £5,000. It's crucial for trustees to understand their obligations and ensure compliance with the registration requirements.

How Fraser Bond Can Assist

At Fraser Bond, we offer expert guidance on trust registration, estate planning, and compliance with HMRC regulations. Our services include:

• Assisting with Trust Registration: Helping you navigate the TRS and ensuring all necessary information is accurately submitted.
• Estate Planning: Providing tailored advice to ensure your assets are managed and transferred according to your wishes.
• Compliance Support: Keeping you informed about your obligations as a trustee and assisting with ongoing compliance requirements.

Need Assistance with Trust Registration? Contact Fraser Bond Today

Ensure your trust complies with HMRC regulations. Speak to Fraser Bond's experts for professional support in trust registration and estate planning.