Changes to the way trusts must be registered came into force in October 2020 – and it’s important you know what you need to do and when.
This is where Wards Solicitors’ specialist Trust Solicitors can help, by talking you through what information you are legally required to supply, registering your trust for you if necessary, and keeping it updated.
HMRC has essentially extended the Trust Registration Service (TRS) to non-tax paying trusts and is now requesting specific information too. Previously, the obligation to register has applied only to trusts that incur a UK tax liability.
The TRS was launched in 2017 as part of the UK’s implementation of the Fourth Money Laundering Directive (4MLD), designed to strengthen the UK’s defences against money laundering and terrorist financing.
But now the next stage of the plan, the Fifth Money Laundering Directive (5MLD) – implemented in October 2020 – will need to be abided to when HMRC’s new portal comes online. There have been some delays but the indication is that it should be ready to register trusts by late summer 2021.
The new legislation now requires all trusts, apart from a few exceptions, to be registered with the TRS, including:
Yes, there are some exemptions, but it’s best to check with us whether your trust falls into one of the excluded categories. They include:
The information required is broadly the same as that required by the previous legislation.
You can find more information by clicking here to read our new Legal Guide – Trust Registration: What you need to know.
HMRC’s online portal still isn’t up and running but it is expected to be ready for non-tax paying trust registrations by late summer.
From this point, trustees will have 12 months to register their existing qualifying trusts.
Any trusts created after the portal becomes available will have 30 days from creation to register.
Not quite! Once the trust is registered, you have a legal obligation to register any changes to the information you previously reported within 30 days using the online portal.
This might include things like a change in trustees or assets or a beneficiary’s address.
Failure to comply with the rules could lead to a significant fine and other sanctions.
Our specialist Trust team is offering a quick and easy package to register your Trust, priced at £250 + Vat. This will not only bring peace of mind but ensure all your paperwork is in order.
We can also keep your Trust updated on the TRS portal for an additional fee of £125 + VAT.
Call: 0117 929 2811