If you are a trustee or personal representative, you may need to register your trust or a deceased person’s estate under the Trust Registration Service. The Trust Registration Service (TRS) is managed by HMRC. It is the government’s way of keeping a record of trusts in the UK.The TRS records the beneficial ownership of assets held in trust. So, if one person (the trustee) legally ‘owns’ an asset or collection of assets, there is a separate record of who actually benefits from the asset(s) (the beneficiary).
Originally, the TRS was only for trusts that had certain tax liabilities.
From 6 October 2020, the need to register under the TRS was extended to cover many other types of express trusts – even the most simple arrangements – including where there is no tax liability. Non-UK trusts are outside the scope of this guidance. Some deceased estates also need to be registered under the TRS. There are different rules for registration, depending on whether the trust is taxable or non-taxable. We briefly explain each below.
Registration of taxable trusts
Since 2017, UK trusts that are subject to the following taxes have been required to register under the TRS:
Capital Gains Tax
Income Tax
Inheritance Tax
Stamp Duty Land Tax
Stamp Duty Reserve Tax
Land and Buildings Transaction Tax (in Scotland)
Land Transaction Tax (in Wales)
For taxable trusts created on or after 6 April 2021, the trustees have had to register the trust within 90 days of becoming liable for tax or 1 September 2022 – whichever is later.
Registration of non-taxable trusts
As a general rule, from 6 October 2020, UK non-taxable express trusts need to register under the TRS. However, this is subject to some exemptions, outlined below.
Express trusts that do not need to register under the TRS if they do not have a tax liability include:
Pension schemes;
Charitable trusts;
Trusts set up in a person’s will if the trust is brought to an end within two years of death;
Certain trusts that pay out on death or critical illness;
Existing trusts with a value of less than £100 created before to 6 October 2020
Trusts set up to hold jointly-owned property, where the legal and beneficial owners are the same; and
Disabled persons trusts and certain other trusts for vulnerable beneficiaries, such as those set up for children with a deceased parent
If you are not sure if you need to register a trust under the TRS we recommend you get professional advice.
The deadline for registering non-taxable trusts depends on when the trust was created:
For non-taxable trusts created on or before 6 October 2020 the registration deadline is 1 September 2022.
For non-taxable trusts created after 6 October 2020, the deadline is 90 days from it being created or 1 September 2022, whichever is later.
