HMRC’s new requirements for the Trust Registration Service

New rules are due to come into force on 1 September 2022 which will require most new and existing trusts to register with HMRC online.  There is a new requirement for trusts which do not have a tax liability to report information to the Trust Registration Service (TRS).  

All trusts apart from a small number that are explicitly exempt (the exemptions are listed on HMRC’s website), are required to sign up to the TRS by 1 September 2022 (if they came into existence before 3 June 2022) or within 90 days of the creation of the trust (if they came into existence after 3 June 2022). 

The following types of trust will need to be registered with the TRS:

  • all UK express trusts, whenever established, with no backstop date, provided in existence on or after 6 October 2020;
  • non-UK express trusts that acquire an interest in land in the UK (including leases for more than seven years) on or after 6 October 2020; and
  • non-UK express trusts that have at least one trustee resident in the UK and which enter into a business relationship on or after 6 October 2020 with a relevant person in the UK (which includes solicitors, banks, accountants and others).

The above requirements mean that many Wills which include property trusts (where the surviving spouse has a life interest and right to occupy), or nil rate band discretionary trusts including those trusts which have a debt/charge scheme arrangement, now have to be registered with the TRS unless they are wound up within two years of death.

In addition, any trust which has been in existence since 6 October 2020 but which is closed prior to 1 September 2022 will still need to register but should then immediately report it as closed.

It is expected that between 500,000 and 1,000,000 trusts are likely to be affected.  All trustees will be jointly liable in complying with these rules and they will need to provide details about the trustees, beneficiaries and settlors there are financial penalties for failure to comply. 

Rollits can provide further advice to you on whether you need to register your trust with the TRS.  We can also register your trust with the TRS if required.  Please contact us if you require further advice and information on this.

Posted on: 26/05/2022

This article is for general guidance only. It provides useful information in a concise form. Action should not be taken without obtaining specific legal advice.

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