When a trust is created, HMRC may require you to register it using its Trust Registration Service (TRS).  The TRS is a register containing the beneficial ownership of trusts and, like many other missives from HMRC it is designed to combat money laundering.  Not every trust will requires registration but the majority of trusts will need to be.

As a general rule any trust whether it is taxable or not will need to be registered within 90 days of it being created.  Further, if a trust has already been registered with the TRS then HMRC will need to be updated when necessary for example when there is a change of named trustees or if the personal details of a named beneficiary change.

In addition, should the tax position of the trust change for example, if the trust were to become liable to Income Tax or Capital Gains Tax,  then again HMRC must be notified by the trustees who need to update the register.  Failure to notify HMRC within the 90 day time limit may risk penalties.

All express trusts will need to be registered with the TRS. Put simply an express trust is one set up by a person (known as a ‘settlor’) who creates the trust with the express intention of creating that trust whether in their Will, Declaration of Trust or by the disposition of property to trustees for the benefit of defined beneficiaries. The most common occurrence would be where a Life Interest Trust has been created under the terms of a Will.

The registration of a trust with the TRS is the responsibility of the trustees who should appoint a lead trustee who will undertake the registration process on behalf of any other named trustees.  The nominated lead trustee is also responsible for keeping the register updated.

At Beers our Trusts Team can help you create and register a trust using the TRS and guide you through the process in order to make it as simple for you as possible.  If you would like to discuss this further please contact our Private Client team on 01548 857000 or at info@beersllp.com