HMRC launches new Trust Registration Service
HM Revenue & Customs (HMRC) has recently introduced an Online Trust Registration Service ('TRS') for new and existing Trusts - if you are a Trustee you need to make sure you take action.
Previously Trusts were registered with HMRC using form HMRC 41g. These forms are now obsolete. Under new laws, HMRC is obliged to collect certain information about the parties to the trust.
The new TRS will provide one online service for trusts to comply with their registration obligations. This will allow HMRC to collect, keep and obtain information in a central electronic register.
Who will need to register?
UK Resident Trusts with UK tax liabilities and non-UK Trusts that receive UK income or have assets in the UK must register.
Even if you already submit annual Trust income tax returns, you still need to register here - https://www.gov.uk/trusts-taxes/trustees-tax-responsibilities
What information will I need to provide?
You will be required to disclose the full name, date of birth, National Insurance number and address of the following:-
- Settlor (that is, the person who created the trust)
- Beneficiaries (this includes minors - they cannot be described merely as a 'class' of beneficiary)
- Persons exercising significant control over the Trust (a parent or guardian)
If any of the above is a non-UK resident then in addition you will need to know their passport and ID card number.
Are there any deadlines I should be aware of?
For Trusts that have previously been registered with HMRC Form 41G, the first filing deadline will be 31 January 2018 - to be updated annually thereafter.
HMRC have confirmed that there will be no penalties imposed where registration is completed after 5 October 2017 but before 5 December 2017.
Is there anything I need to do after registration?
Trustees and indeed their agents (such as Solicitors and Accountants) will be required to update the Register each year that there is tax arising from the Trust which will include Trusts that have already been registered using the HMRC 41G method.
For individual advice and assistance contact our Wills, Probate and Trusts Team to find out how we can help.
Keri Wood, Chartered Legal Executive, Wills, Trusts and Probate
Direct Tel: 024 7649 3100