There has been a widening of the scope of the online Trust Registration Service (TRS) as a result of the Fifth Money Laundering Directive, which the EU designed to combat money laundering and terrorist financing. This is not affected by Brexit, as the Directive has been directly incorporated into UK law. The TRS is now the only way that HMRC can be notified of Trusts.

The TRS was introduced in 2017. At this time, it was only a requirement for Trusts to be registered with HMRC if there was a UK tax liability. Now, there is a significant change requiring blanket disclosure of all trusts including full ownership details. All UK, and some non-UK Trusts, which are currently in existence must be registered online using the TRS, whether they are taxable or not.

Trustees are responsible for registering the Trust with HMRC.

To register, they will need to give details such as information about the Trust assets, any parties involved and the beneficiaries or potential beneficiaries.

If there is no UK tax liability, the Trust must be registered before the 1st of September 2022.

However, if the Trust is created after the 1st of September 2022, it must be registered within 90 days of creation, or within 2 years of death if it is a Will Trust. Also, changes to details or circumstances of the Trust must be updated within 90 days of the change taking place.

To register a Trust or find out more information on the TRS, please visit https://www.gov.uk/guidance/register-a-trust-as-a-trustee

If you are unsure of whether your Trust needs to be registered, you should speak with a solicitor, accountant, or financial adviser.