HMRC have announced that they expect most lifetime and some Will Trusts to be registered with them by 1st September 2022. This will enable HMRC to maintain a record of Trusts currently in operation.
The Trust Registration Service has been put in place by government in order to strengthen compliance with anti-money laundering regulations. The aim is to ensure there is a clear record of all legal (Trustees) and beneficial (Beneficiaries) owners of UK assets.
Although this change in law was unexpected, we believe it will strengthen the independent nature of each registered Trust. It is our view that the small-scale administrative requirement to register and keep your Trust information up to date will support the legal status of your Trust as a separate entity.
The new registration and reporting requirements are easy to follow and free to access online.
- Your Trust must be registered by 1st September 2022 in order to comply with HMRC’s requirements and ensure no penalties arise.
- You must choose a Lead Trustee; we recommend that this is the person who set up the Trust, or their spouse / partner if this person is no longer available. If neither of these individuals is available, we are happy to talk to you about who should be chosen as the Lead Trustee. All Trustees remain equal, but the Lead Trustee takes on the administrative role as the main point of contact for HMRC.
- The Lead Trustee can register the trust themselves at: www.gov.uk/guidance/manage-your-trusts-registration-service
- The Lead Trustee is also responsible for ensuring the register is updated each time there are any relevant changes, for example to Trust assets, Trustees or Beneficiaries.
If you are unable to access the registration process online or require some assistance in registering your trust, our associate company Summit Compliance Services can help you register and maintain your trust records.
You can engage with Summit on a one-off basis, and once your Trust has been registered you will then have the option to join their ongoing programme, which will provide you with annual reviews and updates. We recommend this service to give you the confidence that your Trust remains compliant in view of current and future changes to your Trust and the law.