After a number of delays, HMRC confirmed on the 2 September 2021 that the Trust Registration Service has been expanded and is now open for non-taxable trust registrations.
The HMRC also provided clarification about the trusts that need to be registered, and the trusts that are excluded. The following trusts are excluded from the registration requirement:
- Trusts imposed by statute, including trusts arising from bankruptcy
- Trusts imposed by court order
- UK-registered pension scheme trusts
- Life policy trusts where the policies pay out only on death
- UK charitable trusts, including charities which are not required to be registered with the Charity Commission and with income of less than £5,000 per year
- Pilot trusts established before 6 October 2020 with assets worth less than £100
- Co-ownership trusts where the trustees and beneficiaries are the same
- Trusts for bereaved children, 18–25 trusts and disabled persons trusts
- Trusts for the maintenance of outstanding historic buildings
- Will trusts which come into effect on death provided they hold the assets for no longer than two years after death
- Trusts holding life policy benefits received after the assured person’s death provided, they hold the assets for no longer than two years after death
- trusts created in the course of professional services or business transactions for holding client assets.
Unfortunately, Electronic Benefit Transfers (EBTs) and Employee Ownership Trusts (EOTs) are not exempt and so those in existence on or after 6 October 2020 must be registered by 1 September 2022, including those which have since been distributed.
Any non-taxable trusts created after 1 September 2022 must be registered within 90 days (a welcome relaxation from the planned 30 days), and any changes to the trust details or circumstances must also be registered within 90 days of the change.
Please contact us if you have any queries.
