TRUST - REGISTRATION WITH HMRC

 Key Point: Even Insurance Bonds in trust need registering now.

Since late 2017, HMRC required any tax-paying trusts to be registered with them via the online Trust Registration Service (TRS) for any liability to Income Tax, Capital Gains Tax, Inheritance Tax, Stamp Duty Land Tax and Stamp Duty Reserve Tax. The latest UK Anti Money Laundering Regulations (the fifth Money Laundering Directive issued on 6 October 2020) extended this to include most non-taxable, express UK trusts. HMRC confirmed that the TRS was able to accept the registration of these trusts since 1 September 2021.

Any existing non-taxable trust must be registered by 1 September 2022. Any new trust created from 4 June 2022 must register within 90 days of being created. Failure to register a Trust may result in a fine from HMRC.

This is a service that IFAC can handle for IFAs direct, or we can just guide you on the main requirements.  It has triggered some quite good questions and some of the answers are listed below.

Question:  I already am in contact with HMRC and submitting tax returns for this trust, do I really need to register this trust officially again with HMRC when they are already dealing with it?
Answer: yes you do. But when you log in the system will very quickly tell you if the HMRC consider that this trust is already registered. see log in here
Question:  I am IFA for a bond in trust, and the life offices already notify HMRC of all bond withdrawals etc. Do i still need to notify?
Answer: yes you do.  See log in here

Click here to download the IFAC policy.  

IFAC members can view as usual in the Bat document library. Kirsty.turner@ifac.eu