What is the Trust Registration Service (TRS)

The Trust Registration Service (TRS) was set up in 2017 and is a register of beneficial ownership of trusts.

When originally introduced trustees were required to register trusts that were liable to pay income tax, capital gains tax, inheritance tax and stamp duty land tax.

In October 2020 new rules were introduced to extend the scope of the TRS to UK and some non-UK trusts, with some specific exclusions, regardless of whether or not the trust is liable to pay any tax.

Types of trusts that need to be registered

As examples, this includes life policies held in trust and certain cases of joint ownership of your property.

The only trusts that do not need to be registered are if:

  • only the settlor or beneficiary of the trust has to pay tax;
  • it is a bare trust;
  • it is a charitable trust;
  • it is a resulting trust and the assets go back to the settlor because all the beneficiaries have died;
  • it is a statutory trust created through legislation;
  • it is a constructive trust imposed by a court; and
  • it holds a pension scheme already registered with HMRC.

You also do not need to register your trust if you have to file information:

  • under the Foreign Account Tax Compliance Act (FATCA)
  • for Common Reporting Standard (CRS) purposes

Deadlines

Non taxable trusts

Created on or before 6 October 2020 

on or before 1 September 2022 

 

 Created after 6 October 2020

within 90 days of it being created or becoming liable for tax, or on or before 1 September 2022

Taxable trusts 

Created on or after April 2021

within 90 days of the trust becoming liable for tax or on or before 1 September 2022 (whichever is later)

 

 Created before 6 April 2021 and liable for Income Tax or Capital Gains Tax for the first time 

on or before 5 October in the tax year after the one in which the trust starts to receive any income or has capital gains, and becomes liable for Income Tax or Capital Gains Tax 

 

 Created before 6 April 2021 and has been liable for Income Tax or Capital Gains Tax before 

on or before 31 January in the tax year after the one in which the trust receives any income or has capital gains, and is liable for tax

 

Created before 6 April 2021 and is liable for other taxes 

on or before 31 January in the tax year after the one in which your trust has any other tax liability, like Inheritance Tax. If your trust is liable for more than one tax and both deadlines could apply, you must register it before the earlier of the 2 deadlines. 

It is important to ensure that a trust is compliant with the TRS and is registered before the deadline as HMRC have stated that trustees may be subject to a fine.

If any trust details or beneficial ownership changes you must notify the TRS within 90 days.

In addition to this, if the trust is taxable, you must declare the trust is up to date on an annual basis by 31 January.

If you would like any advice or assistance in relation to the TRS please contact a member of the team on either 0333 006 0823 or TLT.Trust@tltsolicitors.com

Contributor: Sarah Pitman

This publication is intended for general guidance and represents our understanding of the relevant law and practice as at June 2022. Specific advice should be sought for specific cases. For more information see our terms & conditions

Date published

16 June 2022

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