6 weeks and counting! Here’s what you need to know about trust registration
There are now just over 6 weeks left until the deadline of 1 September 2022 by which any trusts set up before 3 June 2022, which require registration on the Trust Registration Service (TRS), should be registered.
Trusts created after 3 June 2022 that require registration should be registered within 90 days of the date of the trust’s creation. Registration is the responsibility of the trustees but they may decide to appoint an agent to register their trust(s) on their behalf.
Trusts that qualify as excluded trusts are not required to register on the TRS but trustees may still decide that the trust is registered to meet their general duty to maintain accurate trust records.
Trustees can register a trust themselves for free on the gov.uk website. Trustee Support Services are able to register trusts on the trustees’ behalf. We charge a fee of £200 per trust for registering a trust. Our website sets out our process for registering a trust.
Trustees who fail to register a trust that requires registration by the appropriate deadline may face penalties from HMRC. Although HMRC has said that it will take a pragmatic and risk-based approach, it has not said what this approach is!
Trustees who are looking to establish a new business relationship with an ‘obliged entity’ also known as a ‘UK relevant person’ on or after 1 September 2022 will be asked to provide proof of the trust’s registration on the TRS or other register. If the trust is not required to be registered, they will be asked for proof of the trust’s exemption. Obliged entities include financial institutions, such as banks, investment providers and insurance companies, and other intermediaries, including solicitors, accountants and some advisers. More detail is available here.
It is also likely that some obliged entities will ask for proof of a trust’s registration (or exemption) where there is an existing business relationship. If trustees cannot prove the trust’s registration (or exemption) on request, they may encounter significant difficulties in administering the trust until such a time that it is registered.
We estimate that there are several hundreds of thousands of trusts that are still required to be registered on the TRS before the 1 September 2022 deadline and would urge trustees to consider registering such trusts as quickly as possible to avoid potential HMRC penalties and difficulties in administering their trusts.
Further detail is available on our website.