Did you know that trustees failing to register a trust with HMRC could result in a fine of up to £5,000?

Since September 2022, HMRC have required all relevant trusts to be registered.

Not all trusts need to register on the Trust Registration Service, which is the government portal used before the trust can be claimed by the lead trustee via their Government Gateway account. Generally, express trusts that incur a tax consequence are required to register, alongside certain non-taxable trusts under specific conditions outlined by HMRC.

It’s important for trustees to consult the latest guidance from HMRC or seek legal advice to determine if their trust must be registered.

The Registration Process

1-Determine Eligibility: First, trustees must determine whether the trust needs to be registered with HMRC by reviewing the latest guidelines or consulting with a professional.

2-Gather Information: Trustees must compile detailed information regarding the trust such as assets held, settlor, trustees and beneficiaries.

3-Access the TRS: Registration is carried out through the Trust Registration Service, which is accessible online. Trustees may need to create a Government Gateway account if they don’t already have one. 

4-Complete the Registration: Fill in the required information on the TRS form. This includes details about the trust’s assets, the identity of trustees, settlors, beneficiaries and the trust’s tax affairs.

5-Update Records: Once registered, trustees are responsible for keeping the trust’s details up to date, reporting any changes within 90 days of their occurrence.

This is a service we are beginning to roll out for clients, as the registration process is an important compliance measure, ensuring transparency and adherence to tax obligations.

Our fee for registering a trust with the Trust Registration Service is £545 with no VAT to pay. If this is something you would like to discuss further, please email your enquiry to [email protected] and we will gladly assist you from there.

Alternatively, please pick up the phone and call us on 01935 848 764.