Trustees have had to provide information on ‘taxable relevant trusts’ to HMRC since 2017 under regulations designed to prevent money laundering and terrorist financing. From 6 October 2020 this extended to many trusts which are not taxable.
Updated 1 December 2020
A ‘relevant trust’ is a UK express trust, or a non-UK trust that receives income from a UK source or has assets in the UK, including a bare trust. All relevant trusts have had to register with HMRC if they are liable to pay any of the specified taxes in relation to the trust’s income, gains or assets.
The specified taxes are income tax, capital gains tax, inheritance tax, stamp duty land tax, the Scottish land and buildings transaction tax, the Welsh land transaction tax and stamp duty reserve tax.
Trusts that are not taxable must now also register and provide similar information unless specifically excluded. The list of excluded trusts is included in our detailed guide.
Different trusts are required to register with HMRC by the following dates:
- 31 January next following the tax year in which the trustees are first liable for any of the seven taxes listed, in the case of a trust set up before 6 April 2021.
- 10 March 2022, in the case of a trust set up after 5 April 2021, where the trustees become liable to pay any of the seven taxes before 9 February 2022.
- 10 March 2022, in the case of any other relevant trust which exists before 10 February 2022.
- Otherwise within 30 days of being set up or becoming liable to pay any of the seven taxes
All relevant trusts must maintain records in writing of the information regarding settlors, trustees, beneficiaries, etc that may have to be provided to HMRC, whether or not the trust is taxable. This therefore extends to trusts that are excluded even while they are not taxable.
From 10 March 2022, HMRC must make information available:
- to a person who demonstrates a legitimate interest in the beneficial ownership of a trust;
- if required by a trustee where a relevant person proposes to enter into a business relationship with the trust;
- to a person making a request about a UK trust or a non-UK trust with at least one UK resident trustee that enters into a business relationship with a relevant person or acquires an interest in land in the UK where the trustees have a controlling interest in a third country entity.
How to register and details of excluded trusts
We have put together a detailed guide on how to register and information on the excluded trusts. You can read it here
Can we help?
If you have any questions or require help complying with HMRC’s Trust Register, please speak with your usual Shipleys contact or one of our specialists shown on this page.
Specific advice should be obtained before acting, or refraining from acting, on the basis of this information. Speak with your usual Shipleys contact for more details and guidance.
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