In our latest blog series our specialist Trusts Team aim to cover some of the most common issues when navigating the administration of Trusts, with this month's topic focusing on the Trust Registration Service. 

The Trust Registration Service (TRS) is a crucial requirement for many UK trusts, ensuring compliance with HMRC regulations. In this article, Harriet Matthew addresses common questions about the TRS, including which trusts must register, trustee responsibilities, and the consequences of non-compliance. Whether you're a trustee or considering establishing a trust, understanding the TRS is essential.

What is the Trust Registration Service?

The Trust Registration Service (TRS) is an online register managed by HMRC. Introduced in 2017 and updated in October 2020, it requires most UK trusts, even those without a tax liability, to be registered. All applicable trusts had to be registered by September 1st, 2022, unless specifically excluded.

Which trusts need to be registered with HMRC and when?

• Taxable trusts: must be registered within 90 days of becoming liable to pay tax in the UK.
• Non-taxable trusts: most UK non-taxable express trusts (with some exceptions) must register within 90 days of creation.
  
  

Which trusts are excluded from being registered?

Certain trusts are excluded if they do not have a tax liability, such as:

• Charitable trusts 
• Life insurance policy trusts (payout on death/illness/disability)
• Trusts holding money or assets of a UK registered pension scheme 
• Pilot trusts (those with less than £100 & set up before 6th October 2020) 
• Will trusts created on death, receiving assets from the estate, and wound up within two years of the date of death
• Co-ownership trusts set up to hold shares of property or other assets jointly owned by two or more people as ‘tenants in common’. 
• Trusts for disabled persons or bereaved minors, 18-25 trusts and personal injury trusts 
• Trusts created to set up a bank account for minors, Junior ISAs and Child Trust Funds
  
  

What are my responsibilities as a trustee?

• Trustees are responsible for registering the trust with HMRC 
• Trustees must keep accurate and up-to-date records of all parties involved in the trust and update the register within 90 days if there are any changes (e.g. changes in trustees, beneficiaries or assets).
  
  

What is a “Lead Trustee”? 

The Lead Trustee is designated by the trustees as the main point of contact with HMRC. The Lead Trustee is responsible for the registration process unless an agent (such as Porter Dodson) is instructed to register the trust on behalf of the trustees. 

What information do I need to register a trust?

As part of the registration process, you will need to provide HMRC with the following information for both taxable and non-taxable trusts:

1. Trust details – Name, creation date and confirmation of its status as an express trust 
2. Trustee details – Name, dates of birth, contact details, nationality and country of residence and National Insurance number for the Lead Trustee
3. Settlor details – Name, date of birth, date of death (if applicable), nationality and country of residence
4. Beneficiary details – Information about named beneficiaries & classes of beneficiaries

For taxable trusts, additional information is required such as details about the trust’s assets.

What happens if I don’t register the trust with HMRC?

Failure to register a trust with HMRC (unless exempt) or keep the register up to date, can result in a fixed penalty of £5,000. We are aware that HMRC are issuing warning letters in respect of unregistered trusts. 

How can we help? 

Porter Dodson’s Trusts Team can advise you if a Trust needs to be registered, carry out all stages of the registration process on your behalf and ensure compliance with HMRC’s requirements.  

Whatever your requirements, Porter Dodson's Trust experts are here to help.