• Date

    26 Oct 2023
  • Category

    Private Client Services

HMRC Trust Registration Service (TRS): Who needs to register?

Rules were introduced on 6 October 2020 to extend the scope of the trust register to all UK express trusts and some non-UK trusts, regardless of whether the trust has to pay any tax, but with some specific exclusions.

These rules were introduced as part of the UK’s implementation of the Fifth Money Laundering Directive (5MLD) to ensure the UK’s anti-money laundering and counter terrorist financing regime is up-to-date, effective and proportionate, as well as providing improved transparency about the ownership of assets held in trusts.

Trustees can register trusts using the extended TRS online service, which opened in September 2021.

In this insight, we outline the registration deadlines for trusts. For information on registration requirements, and excluded trusts, please see our earlier insight. As the rules surrounding the TRS are complex, our Private Client tax team are able to assist with any queries or concerns.


Registration deadlines

The deadlines for registration are as follows:

  • For trusts in existence as of 6 October 2020 or created between 6 October and 4 June 2022, they should have been registered by 1 September 2022. Clearly these are overdue and action should be taken without further delay. We can of course assist with such requirements.
  • For new taxable trusts (i.e., with a relevant UK tax liability), they must register within 90 days of creation.

For non-taxable trusts (i.e., those with no relevant UK tax liability), and which come under the new rules, they must register within 90 days of creation.


Maintaining the TRS

The Trustees must update the register within 90 days of becoming aware of any changes to certain information held on the TRS.  Although some information on the register may not need updating until 31 January following the end of the tax year in which the trust last incurred a relevant tax liability, the legislation is highly complex, and our advice is therefore to make all updates within 90 days of the change. Changes that require notification include, for example, the appointment or retirement of new trustees, updates to the details of trustees, beneficiaries, settlors, or protectors.  Separately, but in addition to the above, for taxable trusts with ongoing tax liabilities, the trustees must complete an annual declaration on the TRS to confirm that there are no changes to report; the trust tax return also includes a declaration confirming that the TRS is up to date.

HMRC can impose penalties for failing to register and for failure to maintain the TRS.

Our team of specialist tax advisors can provide assistance in respect of registration of trusts on HMRC’s TRS and maintaining the TRS. Speak to a member of our Tax Team today.


Trust Registration Service Flowchart | Do you need to register?

Our flowchart can assist in determining the registration requirements and deadlines under the TRS.

Download your copy of our flowchart here

You might also be interested in