The Trust Registration Service

The Trust Registration Service (TRS) has been introduced to create a central register of UK trusts. Historically, only trusts that were liable to pay UK tax were required to register with the TRS. Recent changes now mean that all express trusts must now be registered with the TRS (unless the trust is one that falls within one of the excluded categories).

The requirement is for all express trusts to be registered by 1 September 2022, or 90 days after its creation if later.

If you act as a trustee, you should check to see whether your trust needs to be registered. All express trusts must register, save for those that are exempt from doing so. The exemptions include (but are not limited to):

• Charitable trusts

• Statutory trusts

• Trusts for a disabled person

• Pilot trusts which hold no more than £100 and were created before 6 October 2020

• Bereaved minor trusts and 18-25 trusts set up by the beneficiary’s deceased parent or under the Criminal Injuries Compensation Scheme

• Personal injury trusts

• Certain life and retirement policies (subject to certain conditions)

It should also be noted that if a trust becomes liable to pay UK tax, it will need to be registered on the TRS even if it falls within one of the exemptions.

Another requirement is that deceased estates that have not been distributed within two years of death (unless they are intestate) must be registered, as well as express trusts that were in existence on or after 6 October 2020 but have since been wound up. 

If you need to register a trust, this is done through HMRC’s online system. Information needed includes details of the trust, the trustees, the settlor (the person who created the trust) and the beneficiaries, and also appoint a lead trustee who will be the point of contact for HMRC. If your trust isn’t liable to pay tax, there will be no need to provide details of the trust assets.

Once a trust is registered on the TRS, it is a requirement to update any changes within 90 days of being aware of the change. Also, any new trusts or trusts which cease being an excluded trust after 1st September 2022 will need to be registered within 90 days.

At Fiona Bruce LLP we can assist you in registering with the TRS.

The contents of this article do not constitute legal advice and are provided for general information purposes only.