Less than 5 months to go to register trusts
The clock is continuing to tick down towards the deadline of 1 September 2022 for trustees of existing express trusts to have registered their trust on the Trust Registration Service. Trustees of new trusts have a deadline of 1 September 2022 or 90 days from the date of creation of the trust, if later, to register their trust.
Those that fail to register their trust by the relevant deadline face not only the possibility of fines from HMRC but also potential difficulties in administering the trust after 1 September 2022 when financial institutions, including banks and financial product providers, and other intermediaries will be required to ask for proof of the trust’s registration when starting a new business relationship with the trustees in order to comply with anti-money laundering legislation. It is always possible that some may choose to ‘gold plate’ the new rules and also require proof of the trust’s registration for existing business relationships.
The responsibility for registering a trust lies with the trustees and they can register their trust on gov.uk. However, many trustees may find the registration process daunting and time-consuming and may prefer to appoint an agent to register their trust on their behalf.
Certain trusts (‘excluded trusts’) are not required to be registered on the Trust Registration Service. However, should the assets held in the trust change or the trust incurs a tax liability, it may then be required to be registered at that time. Trustees of excluded trusts may also wish to consider voluntary registration of the trust to meet their general duty to maintain accurate trust information.
Trustee Support Services Limited can register trusts on the trustees’ behalf for a fixed cost. Full details of our services and process for registering a trust are available on our website.
Once a trust has been registered, trustees are required to update the Trust Register with any changes to the details provided. Such changes must be notified (via gov.uk) within 90 days of the date of the change. Trustees of taxable trusts are also required to make a declaration by 31 January each year that the trust details held on the Trust Register are accurate and up-to-date, even if no changes have occurred.
A trust that was in existence on 6 October 2020, but that has subsequently been closed, is still required to be registered (unless it was an excluded trust). Once registered, the trustees should then update the Trust Register to mark the trust as closed.
Trustee Support Services are also available to assist trustees on a consultancy basis.