Trust Recognition Scheme (TRS)

TRUST REGISTRATION SCHEME (TRS) 

HMRC announced changes on 6/10/2020 and implemented a deadline for registering untaxable Trusts. 

The Trust Registration scheme has been around since 2017. 

Trust Registration Service Manual - HMRC internal manual - GOV.UK (www.gov.uk) 

DEADLINE APPROACHES. 

HMRC has now given a deadline for registration of non-taxable Trusts as 1st September 2022. If non- taxable trusts are in existence on or after 6th October 2020 then that is the deadline you are working to. 

90 DAYS 

If you have a non-taxable Trust created after 1st September 2022 then you will have 90 days to register it. 

Are you ready for the deadline? 

TAXABLE TRUSTS 

Taxable trusts need to be registered by 31st January (or 5th October in year of first charge) following the end of the tax year in which the trust had a liability to UK taxation. 

TRUST CHANGES 

The TRS must be notified of any changes of Trust details or beneficial ownership withing 90 days of those changes. Taxable Trusts must declare the Trust is up to date on an annual basis by 31st January. 

GLOSSERY 

Settlor-person or persons putting the asset into the Trust 

Trustee-person who is in charge of the Trust 

Protector-another nominated person with powers over the Trust, although rare, their names will be in the Trust document. 

Get help and advice with registering your Trust by contacting Amanda Coates Solicitor. 

INCOME TAX AND CAPITAL GAINS TAX 

Trusts that are liable for income tax or capital gains tax should register by the 5th October in the tax year after the one in which the trust has a liability on either tax. 

TRUSTS THAT DO NOT HAVE TO REGISTER 

Charitable Trusts, Child Trust funds, Bereaved minors Trust (unless taxable), disabled Trusts for the sole benefit of that person (unless taxable). Interest in possession trusts in a Will within the first two years after death unless the Trusts is going to continue beyond that time, statutory Trusts (on intestacy), life insurance or retirement Trusts, personal injury Trusts if the proceeds are held for the injured person only and co-ownership Trusts (tenants in common). This list is not exhaustive. Please see the TRS manual for further information 

TRUSTS THAT MUST REGISTER 

Discretionary Trusts both taxable and non-taxable, Interest in possession Trusts more than 2 years old, pilot trusts of more than £100, all taxable Trusts, settlor interested Trusts. I would suggest checking with the manual to ensure you comply with the rules. 

DIGITAL HANDSHAKE 

To assist Trustees you must be registered with HMRC as an agent to act. 

Register with HMRC to use an agent services account - GOV.UK (www.gov.uk) 

The Trustee must make steps to claim the Trust, a link is sent to them to authorise agent to act. This creates a ‘digital handshake’ 

You will need to include the Trust creation date (date of death if through a Will), the Trust name, location of the Trustees ie UK, Full details of lead Trustee including NI number. Details of all Trustees and beneficiaries are needed for taxable Trusts. For further guidance and 

starting the procedure, click here Manage your trust's details - GOV.UK (www.gov.uk)