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The new Trusts Registration Service

HMRC has launched its new Trusts Registration Service, replacing the paper form 41G(Trust).

The new system

In response to the Fourth Money Laundering Directive, the new Trusts Register will provide a single online point of access for trustees, personal representatives and their agents to comply with their registration obligations and provide additional information regarding the beneficial owners of the trust.

All trusts with a UK tax consequence (including income tax, capital gains tax, inheritance tax and Stamp Duty Land Tax/Land and Buildings Transaction Tax) must be registered with the Trusts Registration Service (TRS), including new trusts and any which have already been included on Form 41G. The information provided must be accurate and kept up-to-date.

A Self Assessment Trust and Estate Tax Return (SA900) must still be submitted after the end of each tax year, reporting any income and gains.

Registering a trust

The self assessment registration deadline for new trusts is normally 5 October of the tax year after the trust is set up, or when it starts to make income or chargeable gains, if this is later. However, this has been temporarily extended for the first year to 5 December 2017. All other trusts with a relevant 2016/17 tax consequence will have until 31 January to provide beneficial ownership information, via the TRS.

On registering, trustees or agents will be required to provide additional details relating to the trust assets (including addresses and values), the identity of the trustees, settlor, protector, all other people with influence or involvement in the trust, and the beneficiaries or class of beneficiaries.

The required information will include names, dates of birth, national insurance (NI) numbers for UK resident adults, and an address and passport or ID number for non-UK residents, if there is no NI number.

Complex estates

The new Trusts Register also provides a single point of access for personal representatives and their agents to register complex estates and update their records online.

This applies to estates where the value exceeds £2.5m, the tax due for the administration period exceeds £10,000, or the value of assets sold in any tax year exceeds £250,000 for date of deaths up to April 2016 (or £500,000 for date of deaths after April 2016).

Please contact us for more information.