If you are a trustee, you may need to register your trust or a deceased person’s estate under the Trust Registration Service. Read all about it below.
What is the Trust Registration Service?
The Trust Registration Service, or TRS, is managed by HMRC, and is the government’s way of recording the trusts in the UK. The TRS records the beneficial ownership of assets held in trust.
Who Needs to Register under TRS?
The majority of UK trusts need to register under the TRS, including some deceased estates. Originally, the TRS was created for trusts that had specific tax liabilities, however, from 2020, the TRS was extended to cover many other types of trusts.
UK trusts that are subject to the below taxes are required to register under TRS and must register within 90 days of becoming liable for tax from being created:
- 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)
The following types of trusts must register even if they have no tax liability:
- UK express trusts – unless they are specifically excluded
- Non-UK express trusts
- 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
How to Register a trust under TRS
It is the trustees responsibility to register the trust under the TRS. If there is more than one trustee, then you have a joint legal responsibility to register the trust. Only one trustee is required to do the registration as a ‘lead trustee’, and they will also be the main point of contact with HMRC. You can also use an advisor or agency to register the trust on your behalf.
Trustees need to register trusts on the Government website at Gov.UK. This requires you to have a Government Gateway ID – which differs from personal Government Gateway ID.
Information Required
When registering the trust, you will need to provide the following information:
- Lead trustee details
- Other trustees details
- Settlor details – those who have put assets into a trust
- Beneficiaries details
- UK land or properly details that the trust has purchased
- National Insurance numbers or passport details for beneficiaries
Updating Trust Information
After registering, if any information changes then it is up to the lead trustee to update the details in the TRS. When filling out the self assessment tax return, trustees must also confirm that all details are up-to-date and correct.
Trust Registration Service TRS Penalties
Failure to fill out, or failure to keep your information up-to-date, can result in a £5,000 penalty per trust. This is why it is paramount that you get professional help if you are unsure of what to do.
TRS Help & Support
If you need help registering your trust using the Trust Registration Service, contact James & Uzzell today. We are specialist accountants in Swansea that can support your business with tax.