Change to HMRC Trust Registration Service (TRS)

May 23rd, 2022

It was the case until recently that the requirement to register a trust with the TRS related only to trusts with a UK tax liability (including trusts that are outside the UK but have a UK tax consequence). Tax consequences arise if the trust incurs UK liabilities for income tax, capital gains tax, non-resident capital gains, inheritance tax, stamp duty land tax or stamp duty reserve tax.

What has changed?

An extension of the rules means that all Express Trusts (i.e. a trust created intentionally by an act of the settlor or Will maker rather than one imposed by law) that do not fall into one of HMRCs limited exemptions must now be registered; these include lifetime trusts and Will Trusts.

The TRS provides a single point of access for trustees and their agents to register and update trust records online, replacing the paper Form 41G.

Trustees will also need to confirm the information held on the Trust Register is accurate and up to date annually. This includes those trusts that have already registered with HMRC using Form 41G.  If you are the trustee of an existing trust you have until 1st September 2022 to register the trust on the TRS.  There may be penalties imposed for late registration/filing.

More information can be found here.

Your options

You can either instruct your/an accountant to undertake this task for you or deal with it yourself online here. You will need a Government Gateway online account but you can apply for one using the link on the above page

We offer this service too, the cost of which is £450 plus VAT.  If we are instructed to assist before 31st July 2022 there ought to be no difficulty in our helping to register a trust before the 1st September 2022 deadline. We will be able to accept instructions after the 31st July but cannot guarantee that they it be registered before the deadline. Failure to register a trust or update TRS details within the applicable time limits may result in a penalty for which the trustees will be liable.