Attention trustees, new legislation has come into force regarding the trust registration process, with a deadline of 1st September 2022 looming. Read on to find out more
What was the previous system?
The Trust Registration Service (TRS) was established in 2017, requiring trustees to register if their trust was liable to pay:
- Income tax
- Stamp duty reserve tax
- Inheritance tax
- Stamp duty land tax
- Stamp duty reserve tax
- Capital gains tax
New legislation
New legislation has been introduced meaning that most non-taxable UK trusts now also have to be registered to the TRS
This applies to any trusts that have existed since 6th October 2020
What about trusts made after the deadline?
If a trust is made after 1st September 2022, the trustee will have to register with the TRS within 90 days
What about trusts that have been closed?
For trusts that were in existence from 6th October 2020 but have since closed, trustees are still required to register the trust. However, they can then immediately close the trust record
What does the HMRC want to know?
Trustees will need to tell the HMRC details of:
- The trust itself- any information about the assets within the trust
- Information about the settlor (also known as the trustor)- this is the person who put their assets in the trust
- Beneficaries- these are the people benefitting from the trust, who it is managed on behalf of
- Trustees- the people managing the assets in the trust. They carry out the settlor’s wishes according to their will or trust deed, managing the trust on behalf of the beneficiaries
- Protectors- someone who monitors the administration of the trust by trustees
Trustees will also have to update the trust register of any changes in the trust’s details, such as a change of trustee, or an additional beneficiary, within 90 days of the change
What to do next
At Red Star Wealth, we can’t do the registration for you. However, we can most certainly connect you to solicitors who do deal with the registration process if that’s what you need