New HMRC Registration for Non-Taxable Trusts

In 2019, HMRC introduced a new Trust Registration Service (TRS) requiring any taxable trusts to register. From 1 September 2022, all non-taxable trusts will now also be required to register through HMRC's Trust Registration Service.

This is a compulsory requirement for anyone with a trust that meets the registration criteria.

Please do not delay - your urgent action is required if you will be affected by the new rules.

Do you have a trust?

It is not uncommon to not be aware that you have a trust - this is because many financial investments are created in a trust, for example some types of investment bonds and investments used for IHT planning. If you are not sure whether you have an investment in a trust that will need to be registered, you should contact your investment adviser to check.

Another scenario where registration was not a previous requirement is if you have a life interest will trust with no tax liability. However, if it has been over two years since the trust was created on the death of the testator, then the trust will now meet the new rules and will be required to register by 1 September 2022.

Trusts excluded from registering

A full list of trusts not required to register with HMRC can be found by clicking here, but we have included a summary below of the most common types excluded:

• pension schemes
• charitable trusts
• policy trusts paying out on death or critical illness
• trusts for a disabled person
• existing trusts (called pilot trusts) with a value of less than £100 created prior to 6 October 2020
• will trusts that are wound up within two years of death
• bank accounts in trust for minors

Ongoing compliance

We would also like to make you aware that if you have a trust that is currently exempt from the registration rules, but circumstances change that would make registration a requirement, HMRC are imposing a 90-day deadline for this process to be complete. Therefore, if there are any changes made to your trust's position after September 2022, please let us know as a matter of urgency so we can ensure you remain compliant.

 We are here to help

We are here to help in any way we can. Please contact us on 0121 693 5000 (Solihull Office), 01384 250202 (Halesowen Office) or 01675 466344 (Coleshill Office) for more information.