If you are involved in a trust, you may be aware that the laws around registering that trust have recently changed and all changes and registrations must be complete by September 2022 ...
Changes from September 2022 mean all UK trusts will have to be registered regardless of whether they have tax liabilities. Any trusts which are already registered will have to provide additional information about the beneficial owners and assets of trusts!
This includes any non-UK trusts if there is any associated income or assets coming from the UK whether it is liable for tax or not. In addition, any Trusts that have a tax liability which is covered by a relief, the trust will still need to be registered to claim the relief through self-assessment.
After September 2022, service providers will be obligated to report any discrepancy between the information on the Trust Registration Service and the information collected as part of due diligence.
Essendon help with Registering your Trust and we are happy to support you however you need. We can answer any questions you have. Essendon can also register your trust on your behalf as an Agent. We will require a list of all beneficiaries along with other information so we will be in contact with you throughout the process.
If any changes are made to the Trust itself in the future, such as adding, amending or deleting details, on both taxable and non-taxable Trusts, trustees will have 90 days from the creation of a trust or from the date of any changes made, to report the relevant information on the Trust Registration Service.
If the Trust is liable to tax for any year it must be declared on the trust register that the details of the associated people are up-to-date, this will be required whether changes have been made or not.
There are still some trusts which are excluded from the Trust Registration System, these include:
- Trusts that hold money or assets of a UK-registered Pension Scheme - Life or Retirement policies providing that the policy only pays out on death, terminal or critical illness or other similar circumstances - Trusts for insurance policy benefits received after death of a person provided its paid out within 2 years of death - Some Charitable trusts - "Pilot" trusts set up before October 2020 which hold no more than £100 - Co-ownership trusts for tenants in common - Will trusts - Trusts for bereaved children under 18 - Financial or Commercial trusts created in the course of professional services
For full details and terms on any of the above trust examples visit the gov.uk website.
Only one trustee can register the Trust. If there are multiple trustees it's important to select who will be the person to complete the registration. HMRC will then refer to this person as the Lead Trustee for the trust.
As mentioned above, Essendon Accounts & Tax can register your trust on your behalf, so please click here to read more about it on our website.
If you feel inspired to find out more about anything I've said here, do call me on 01908 774320 or leave a comment below and I'll be in touch as soon as I can.