As of September 2022, it will become mandatory for non-taxable trusts to be registered with HMRC. It is believed that this change comes from the Government’s efforts to combat money laundering. Visibility across assets in all kinds of trusts and private transactions will be possible.

Previously, HMRC’s stance has been that trusts don’t need to be registered with them unless the trust is liable to pay, or becomes liable to pay, capital gains tax, inheritance tax or certain other types of tax.

Expansion to the Trust Registration Service

Trustees will be required to complete annual declarations with the Trust Registration Service (TRS). In these declarations, they must state whether any changes have been made.

If any changes to a trust are made, they must be registered with the TRS within 90 days.

They key change to remember is that this applies to both taxable and non-taxable trusts (i.e. trusts that do not currently incur any liability for these taxes).

Types of Non-Taxable Trusts

The types of non-taxable trusts that will now need to be registered with the TRS may include trusts that include a share of the main residence and other non-income producing assets.

Such trusts will need to be registered by 1 September 2022 or 2 years from the date of the creation of the trust, if created on death.

Non Taxable trusts can be registered online with HMRC using a government gateway ID, further information can be found here.

Bare trusts, in which a trustee has no responsibility or power, such as those used for children, will not need to be registered.

Guidance on Trusts

From setting up a trust of any kind, to the administration of them, you can rely on the expertise of our specialists.

Reach out to us on 0161 969 3131 or fill in our contact form and one of the team will be in touch.