HMRC Trust Registration Service – What You Need to Know
15 November 2022
Wills & Estate Planning
Created by the Fourth Money Laundering Directive and the implementation of further counter-terrorist financing regimes, the HMRC’s Trust Registration Service came into force in UK law on 6 October 2020.
The new rules required that from this date there would be a database, accessible to interested members of the public, of the beneficial ownership of companies and trusts. The register would include a list of all taxable, expressly made trusts in the UK – that is trusts made directly and with clear intention by the Settlor – unless they were specifically excluded.
On 9 March 2022, the legislation expanded further directing that not only were taxable express trusts to be registered but all express trusts, to include non-taxable express trusts, were also required to be registered with HMRC in the Trust Registration Service.
Given the extension of the legislation to require the registration of non-taxable Trusts, it is now imperative that advice is taken as to whether any trust that you may have an interest in, should be registered. This includes Will trusts, inter vivos trusts and Declarations of trust.
Your legal representative has an obligation to advise HMRC if they are aware that counsel has been taken and you have chosen not to proceed with the registration. Penalties of £5,000.00 for inaction are chargeable by the Revenue in these instances.
At MKB Law, we can advise if your trust is registerable, and can take care of the registration on your behalf. Please note that the requirements for trusts to be registered are retrospective in that it applies to trusts that were live on 6 October 2020 but have since been wound up.