Updated 27 June 2022
Background
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.
Registration timetable
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.
- 1 September 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 4 June 2022.
- 1 September 2022, in the case of any other relevant trust which exists before 4 June 2022.
- Otherwise within 90 days of being set up or becoming liable to pay any of the seven taxes
Record-keeping
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.
HMRC’s obligations
From 1 September 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.
Copyright © Shipleys LLP 2022
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