The Trust Registration Service (TRS) is an online service that provides a single digital route for trustees and personal representatives to register a trust and notify HM Revenue and Customs (HMRC) of changes in circumstances.
In a significant extension to the service, on 1 September 2021 HMRC confirmed that the TRS was able to accept the registration of non-taxable, express UK trusts. The original deadline for trusts to be registered was 10 March 2022. However, due to delays in getting the TRS prepared, this deadline was later extended to 1 September 2022.
Rules relating to non-taxable trusts
HMRC have confirmed that the 1 September 2022 deadline applies to all trusts that existed on or after 6 October 2020 – even if they are now closed. After this deadline, all new trusts (and any amendments to existing trusts) must be registered within 90 days. So that any trusts created in the run up to the change in deadline are not disadvantaged, the 90-day rule will apply to registrable trusts created from 2 June 2022.
Exempt non-taxable trusts
Some trusts are exempt from registration unless they pay UK tax. For example, trusts used to hold money or assets of a UK-registered pension scheme, trusts holding life insurance and other policies that pay out upon a person’s death, charitable trusts and will trusts.
Help is at hand
If you are involved with trusts or estates within the United Kingdom, or with links to the United Kingdom, you may find HMRC’s TRS Manual helpful. This can be found here https://www.gov.uk/hmrc-internal-manuals/trust-registration-service-manual/trsm10010
The rules relating to trusts are complex, but sensible financial planning, including the use of trusts, can help to reduce the amount of tax you pay and safeguard your wealth for the future. We can help with any trust queries you may have – please get in touch.
Information is based on our current understanding of taxation legislation and regulations. Any levels and bases of, and reliefs from taxation, are subject to change. The Financial Conduct Authority does not regulate tax planning.