Ads by Google

Registration of Trusts

Executors need to be aware that, if a Trust arises out of a Will, where there are any taxes arising, i.e. Income Tax, Inheritance Tax, Capital Gains Tax or Stamp Duty, the Trust will have to be registered with HMRC, under the new Trust Registration Service (TRS). Information for all beneficial owners in relation to the Trust is required to be recorded with HMRC. Beneficial owners will include:

  • The settlor
  • Trustees
  • Named beneficiaries
  • Individuals who have control or powers over the Trust
  • Potential beneficiaries named in a letter of wishes

The register must include the following information for each of the above:

  • Full name
  • Date of birth
  • National Insurance number or Unique Taxpayer Reference (UTR)
  • Nature of relationship to the Trust

The registration can only be done online. It is the Trustees’ responsibility to ensure that the Trust is registered, but if you are using a Solicitor and/or Accountant in relation to the Trust, then they may be able to deal with the registration as “Agent”.

There are deadlines that apply – for existing trusts it is 31 January 2018. For newly created trusts the application for registration will need to be made before 4th January 2018 to avoid penalties.

When a Trust has a UK tax liability the following information must be provided to HMRC:

  • Full name of Trust
  • Date established
  • Description of Trust assets and value at date of notification
  • Address of any property assets
  • Where the Trust is resident
  • Contact address for trustees

There has been quite a lot of controversy on this issue amongst professional institutions, as HMRC has been particularly slow in setting up the mechanism for registrations to be lodged. It is recommended therefore, that lay Executors seek professional advice on this matter. 

About the author

Ads by Google