Earlier in the year, we discussed the Trust Registration Service (TRS) and the additional regulations that came into force on 6th October 2020 as a result of the Fifth Money Laundering Directive (5MLD). Recently, HMRC has announced that a deadline extension for the TRS will be implemented.
It will be a requirement to register all UK express trusts (regardless of their tax liabilities) unless they fall under the list of exemptions – some of these include trusts created by law, for example those occurring in certain circumstances if an individual dies without a will, pension trusts, charitable trusts, trusts for vulnerable beneficiaries or bereaved minors, personal injury trusts and co-ownership trusts, amongst others. Existing pilot trusts that hold assets with a value of less than £100 are also exempt unless further assets are added.
Why Has There Been a Deadline Extension?
The original deadline for registration of all trusts (subject to the exemptions set out above) was 10th March 2022.
To allow for these requirements to be fulfilled, the HMRC must complete a restructure of the TRS system to provide it with sufficient capacity to cope with the millions of extra trusts that will be required to register.
Unfortunately, the re-design process has not yet been completed, and HMRC have stated that they believe this will now be complete in summer 2021. As a result, they have indicated that they intend to extend the initial deadline of March 2022 to allow for a period of 12 months following the completion of the upgrades to the IT systems to give users time to complete their requirements. Further details will be announced in due course.
For further information regarding the Trust Registration Service or for any other Trust related matter, please contact the trusts team