What Is The Trust Registration Service
‘What is the Trust Registration Service (TRS)?’ Wills and Probate Solicitor Charlotte Day discusses in her latest blog….
What Is The Trust Registration Service?
The Trust Registration Service (TRS) is an online register of trusts operated by HM Revenue & Customs. It was introduced to ensure UK compliance with the 4th and 5th EU Money Laundering Directive after the passing of the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017.
What Type Of Trust Needs To Be Registered On The TRS Register?
Trustees are now required to register most types of trusts on the TRS register, regardless of whether they have a tax liability or their size. HMRC requires the Trustees to provide information about the trusts such as who set up the trust, who trustees are, who the beneficiaries are and what assets are in the trust.
Any trusts which were in existence as at 6th October 2020 (which are not exempt) need to be registered by 1 September 2022. Even if they have since been closed.
Any trusts created from 1 September 2022 need to be registered within 90 days of creation and there are timescales for updating information on an annual basis and notifying HMRC of any changes to the trust.
The register also requires all deceased estates to be registered where the administration has taken more than two years.
What Are The Exemptions?
There are some exemptions to registration, but very few trusts will fall into these. Failure to register a trust that is not exempt will result in financial penalties for which the Trustees will be personally liable.
The rules are complicated and there are likely to be some teething problems with HMRC due to the number of trusts that require registration. This has now become a huge undertaking for solicitors who are having to go through old files to identify trusts that need to be registered. However, this doesn’t only affect professional Trustees, as lay Trustees are required to meet the same reporting requirements.
It is important therefore that you seek professional advice to ensure that you are acting in accordance with all of your duties as a Trustee. A failure to comply with the reporting requirements could amount to a breach of your Trustee duties and financial penalties by HMRC.
How Can Timms Help?
If you require further advice, please do not hesitate to contact Charlotte Day on 01530 564 498 or via email at c.day@timms-law.com. Alternatively, you can visit the Wills and Probate section of our website here.
March 2022