Have you heard about the Trust Registration Service?
The Trust Registration Service (known as the ‘TRS’), established under the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017, has recently been amended under the Money Laundering and Terrorist Financing (Amendment) Regulations 2020.
The TRS was originally introduced as a way to keep track of all UK trusts that have to pay relevant taxes, however in a bid to combat Terrorist Financing, the TRS has been expanded to include nearly all express trusts that are either UK trusts, or have a UK element.
This means that any trusts that fall within the scope of the new regulations, and were in existence after the 6th October 2020, need to be registered with the TRS (even if they need to be subsequently closed if they have since ceased).
Whether a trust is a qualifying trust is a complicated matter, and we advise that you seek legal advise about any trust that you know exists as a matter of urgency to confirm whether or not the trust requires registration, as these trusts need to be registered with the TRS by 1st September 2022 to avoid incurring a fine with HMRC.
Common trusts that will require registration are:
Gifts to children (under 18 years) in Wills
Life Interest / Bloodline Trusts in Wills
Discretionary Trusts (lifetime or Will)
Properties with Declarations of Trusts in place, where there is a person benefitting from the property who is not on the proprietorship register
