Trusts face new reporting requirements


Trusts face new reporting requirements

This page was last updated on July 21, 2022
Many people use trusts in their financial arrangements. From 1st September 2022 the Government is introducing changes which require certain trusts to be registered with HMRC. This article explains which trusts are affected and what you need to do to comply.

While this article outlines the changes to help you plan, individuals’ arrangements vary.  We do recommend people seek professional advice to ensure their specific circumstances comply with any fresh obligations under the new arrangements.  Please speak with your usual Shipleys contact or one of our trusts specialists shown on this page.

What the changes will mean

From 1st September 2022, more trusts will have to be declared to HMRC irrespective of whether tax is payable on them. These include:

Previously only express trusts with a UK tax liability required registration. 

Are any trusts excluded from registering?

If any of the following non-express trust types do not have a tax liability, we understand that (currently) they are exempt from the new reporting arrangements:

The full list of trusts can be found in HMRC’s Trust Registration Service Manual.  If in doubt, please ask one of our team of specialists shown on this page.

Timetable and deadlines

From 1st September 2022, HMRC must be notified of changes to the trust details/ or circumstances within 90 days of the change.
If the trust has incurred a UK tax liability, trustees should still comply with existing timescales and get appropriate tax advice.
Taxable trusts created on/after 6 April 2021 should be registered with HMRC either within 90 days of the trust becoming liable for tax, or by the 1st September 2022 (whichever is later).

So, in summary:

How to register and a helping hand

Trustees can register a trust themselves using the links here – https://www.gov.uk/guidance/register-a-trust-as-a-trustee .

As well as offering advice on whether a trust requires registration we can also, for a small cost, register trusts on your behalf and guide you in claiming the trusts we have registered with HMRC.

Next steps

With the changes coming in soon, we encourage all our clients and contacts with trusts affected to make the necessary preparations. Please do reach out to our team if you have any questions or need any help. Speak with your Shipleys contact or one of our trusts specialists shown on this page.

Specific advice should be obtained before taking action, or refraining from taking action, in relation to this summary.

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