The New Trust Registration Service (TRS)

As part of HMRC’s wider digital strategy and the implementation of the ‘Fourth Money Laundering Directive’, HMRC have launched a new Trusts Register which will capture all of the financial information about a Trust or Estate on an online database. 

All trusts or estates which have a “Tax Consequence”, whether existing or new, will need to be registered via the new Trust Registration Service.  It is the responsibility of the trustees or their personal representatives to ensure that the information provided to HMRC is on time and accurate. 

The Trust Register will provide a single point of access for trustees and personal representatives to update their records online and comply with reporting obligations, and will replace the previous ad-hoc processes and paper correspondence. 

When do Trustees need to register? 

Where there is a “Tax Consequence” in the year this must be reported via TRS by 31 January 2018.  A tax consequence includes: 

  • An Income Tax liability
  • A Capital Gains Tax liability 

Although HMRC have not yet issued guidance on this, it is likely that other taxes that will probably be reportable under the TRS include:

  • Inheritance Tax
  • Stamp Duty Land Tax

What information is required?

 Details of the trustees and/or personal representatives; the beneficiaries and the settlor (this includes National Insurance numbers and dates of birth)

  • Details of the initial settled property including values
  • Details of any additional settled property including values

If the trust was established by a will then HMRC will required details of the deceased

 Where a Self-Assessment Tax Return is already submitted, the information must also be reported to HMRC via the TRS each year where a tax consequence arises.

 As the deadline for the registration is only four months away now would be a good time for Trustees to act.

 It is important that trustees and personal representatives understand and comply with their reporting requirements. If you have any queries or would like further information, please get in touch with one of the tax team at Scrutton Bland or contact Samantha Mudd on 01206 838400