Some trusts must be registered online by 01 September 2022

All UK trusts and some non-UK trusts, unless exemptions apply, must be registered with HMRC’s Trust Registration Service (TRS) by 01 September 2022.

Legislation introduced in 2017 previously required trusts with a tax liability to be registered with HMRC online via the TRS, but that requirement has now been extended significantly under the 2020 Fifth Money Laundering Regulations to include all UK express trusts, unless it falls within an excluded category.

Failure to register by the deadline may result in penalties from HMRC, which will be higher for those trusts with a tax liability.

Does my trust need to be registered online?

All express trusts in the UK in existence on or after 06 October 2020 are affected unless they fall within an excluded category (see below). An express trust is one created intentionally by a Deed, Settlement, Declaration of Trust or under the terms of a Will of someone who has died.

The UK express trusts that must be registered online are:

• Lifetime Discretionary Trusts created after 06 October 2020 and those created before that date holding more than £100
• Lifetime Interest in Possession Trusts created after 06 October 2020 and those created before that date holding more than £100
• Declarations of Trust where the people registered as the owners are not the same as the beneficiaries
• Discounted Gift Trusts
• Bare Trusts
• Trusts created under the terms of a Will of someone who has died if the Trust is still in existence two years from the date of death.

Which trusts are exempt?

The following categories of trust do not currently need to be registered:

• Pilot Trusts created before 06 October 2020 holding less than £100
• Charitable Trusts
• Personal Injury Trusts
• Disabled Person’s Trusts with no tax liability
• Declarations of Trust where the registered owners are also entitled to the asset
• Trusts created by a will of someone who has died but only for 2 years after the date of death, after which it will need to be registered
• Bereaved Minor’s Trusts and 18-25 Trusts
• Trusts which are registered elsewhere or highly regulated such as those set up by a Court Order, created under Intestacy or those set up under a life policy during the lifetime of the life assured.

How to register a trust on the Trust Registration Service

Trustees can register the trust on the Government website. However, as this is a complex registration process in which all information must be correct, it is recommended to undergo this process with the supervision of a professional.