Trust Registration - An Update

It is only 10 weeks until the deadline for the registration of Trusts as part of the Trust Registration Service.  With the holiday season as part of this, time is quickly running out to make sure that all trusts are registered by the 1 September 2022

Following the implementation of the Money Laundering and Terrorist Financing (Amendment) (EU Exit) Regulation 2020 the requirement to register was extended to all express trusts including non-taxable trusts.

As a result many non-taxable express trusts are caught which previously would not have been, unless they can qualify under the exemption in Schedule 3A. One of the areas which is caught which is not obvious is where someone has died and their estate remains unadministered 2 years after the death.  In that case HMRC treat the assets still held by the executors as being in  a bare trust which needs to be registered.

It is therefore necessary that all trustees should review their trusts and check whether they have been registered or whether they need to be registered.  If trusts are not registered by the 1 September, then penalties will apply.

If you would like assistance from Foot Anstey's UK's Succession and Tax Team, get in touch with the team below: