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Trust Registration Service – non-taxable trusts, don’t miss the 1 September deadline!

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The Trust Registration Service (TRS) is a register of beneficial ownership of Trusts which was introduced in 2017. Initially, the TRS required Trusts with UK tax liabilities to register through this Service. Further regulations have since been introduced requiring certain UK non-taxable Trusts (and some non-UK Trusts) to register under the TRS by 1 September 2022. Consequently, Trusts that may not have a UK tax liability will now need to be registered under the TRS. In addition, applicable Trusts created after 1 September 2022 will need to register within 90 days of creation.

Types of Trust that require registering

Generally, any UK trusts intentionally created by settlors (known as express trusts) are caught by these TRS regulations. These include, but are not limited to:

  • Discretionary trusts
  • Interest in possession trusts
  • Bare trusts. These can extend to nominee arrangements where assets are held for other persons (often minors)

In addition, non-UK trusts are required to register if they have acquired UK land from 6 October 2020 onwards or meet the criteria of having a business relationship in the UK.

Exemptions from registration

Exemptions exist that allow some trusts to be excluded from registering under the TRS if certain criteria are met. The rules surrounding this exemption status are extensive and would need to be considered on a case by case basis to confirm the position. We outline below some common trusts that are generally exempt from registration. These exemptions are usually subject to certain conditions being met, and therefore we recommend the position is confirmed in each case.

  • Trusts that are registered as a charity in the UK
  • Property ownership trusts where the trustees and beneficiaries are the same persons
  • UK registered pension schemes
  • Trusts where a disabled person is the beneficiary
  • Trusts created by Will, unless they are still in existence from two years after the date of death
  • Historic pilot trusts
  • Employee share scheme trusts
  • Bank accounts held for minors and Child Trust Funds/Junior ISA’s (but not investment accounts and portfolios held for minors)

How can Menzies help?

If a Trust is required to register, various details are required about the Trust and the associated settlors, trustees and beneficiaries, and Menzies are able to assist with these registration requirements. Our fee for this compliance will be in the region of approximately £350 to £500 plus VAT.

Should you require assistance from us, we look forward to hearing from you so that we may take matters forward as soon as possible for any relevant trusts, prior to the 1 September 2022 deadline. Please send an email to trustregister@menzies.co.uk and a member of the team will be in touch to take matters forward with you.

Alternatively, it is possible for Trustees to complete the Registration requirements without the assistance of a third party by them registering directly with HMRC. The following website allows Trustees to register Trusts directly with HMRC – https://www.gov.uk/guidance/register-a-trust-as-a-trustee

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