How do I register a Trust with the Trust Registration Service (TRS)?

Find out if You Need to Register your Trust with HMRC

When you set up a Trust, you may need to register it with HMRC – whether or not it has a tax liability.

New regulations that took effect in 2020 changed the way Trusts are registered through the Trust Registration Service (TRS).

Under the new rules, certain Trusts may have to be registered even if they don’t have to pay any UK tax.

It’s important that you understand whether or not the Trust has tax to pay, so that you can stay up to date with any payments to HMRC.

Trusts that Need to Register via TRS

There are two types of Trust that need to register with the TRS.

• Taxable Trusts – those that have a tax liability; they may be liable for income tax, capital gains tax or inheritance tax.
• Express Trusts – these are created to take effect during your lifetime rather than when you die. They are often used to protect the value of your property and enable you to remain in your home.

All new Trusts must be registered with the TRS within 90 days.

If you are a Trustee, it’s your responsibility to find out whether or not the Trust in question needs to be registered. If it does, you’ll need to provide the information needed to HMRC – this includes the names of the person who set up the Trust, the Trustees and the beneficiaries.

Examples

We suggest you check the HMRC website to learn more about the types of Trust that do – and do not – need to register with the TRS.

For instance:

• Charitable Trusts: Not required to register on TRS
• Child Trust Funds: Not required to register on TRS
• Disabled Person(s) Trust: Not required to register as express Trusts, but may have to register if they have a UK tax liability
• Protective Trust: No exclusion from registration – but check depending on terms of the Trust.
• Unit Trust: Authorised unit trusts not required to register, but may have to for taxable purposes. No exclusion for unauthorised unit trusts.

How Will Power Can Help

As you can see, there is a great deal of potential for complexity around the subject of registration. If you set up a Trust, or are a Trustee, it’s vital that you find out whether or not it needs to be registered via the TRS.

We can conduct a free, no-obligation review of your circumstances and help you to understand your position – and will give an expert view on whether or not you need to register.

Our expert consultants have considerable expertise in the establishment and management of a wide range of Trusts, and should be able to advise you on your next steps.

However, any information we give you should be treated as indicative, and you should always check the Trust Registration Service section of the HMRC website.