Rule changes to Trusts means essential registration for many

New rules are coming into force to extend the obligation to register all UK express Trusts and some non-UK Trusts with the HMRC Trust Register Service (TRS), irrespective of whether the trust has incurred a tax liability (subject to some specific exclusions).

The scope of Trusts which must be registered has been significantly widened, therefore millions of Trusts which previously may not have been registerable, must now be registered.

Failure to register on time will result in the Trustees being liable for penalties. It is important to note, the responsibility is solely on the Trustees and they will be liable for any penalties, not an agent they may use to assist them in managing the trust.

Jennifer Robinson from the Private Client team at Wake Smith Solicitors looks at the issue.

New Rules

Previously, Trustees were only required to register a Trust with TRS if it was liable to pay UK taxes.

Under the new rules, Trustees are required to register the Trust if it falls under one of the following categories:

  • UK express Trusts such as discretionary Trusts, immediate post death interest Trusts or bare Trusts irrespective of tax liabilities
  • Non-UK resident Trust if it acquires real estate in the UK
  • Non-UK Trusts with at least one UK Trustee entering into a business relationship with a UK obliged entity such as a UK bank or a solicitor
  • Trusts that are liable for one of the following taxes (even if it may otherwise be classed as an exempt Trust)
    • income tax
    • capital gains tax
    • inheritance tax
    • Stamp Duty Land Tax (Buildings Transaction Tax in Scotland)
    • Stamp Duty Reserve Tax

How can Wake Smith help?

Not many people are aware how burdensome being appointed as a Trustee can be.

The law surrounding Trusts and Tax can be complex and difficult to understand, therefore seeking professional advice to help you understand your role as a Trustee can help take a weight off your shoulders.

Wake Smith is familiar with the law and keeps up to date with any changes therefore if you are in doubt about whether your Trust has become registrable, or you require any other advice or assistance in your role as Trustee, Wake Smith Solicitors are more than happy to assist you.

For advice on registration of Trusts or any other private client matters contact Suzanne Porter, director and head of private client at Wake Smith on 0114 224 2178 or [email protected] 

Tags

Archive

March 20241February 20242January 20248December 20236November 20232October 20235September 20232August 20234July 20232June 20235May 20238March 20234February 20235January 20233December 20225November 20224October 20224September 20223August 20221June 20221May 20227April 20223March 20223February 20223January 20224December 20214November 20213October 20215September 20216August 20212July 202111June 20218May 20216April 20212March 20218February 20218January 20219December 20208November 202013October 20209September 20208August 20203July 20208June 202016May 202013April 20209March 202016February 20209January 202011December 20199November 20199October 201911September 20195August 20194July 20196May 20198April 20196March 20193February 20195January 20194December 20186November 20185October 20182September 20185August 20184July 20189June 20184May 201810April 20185March 20184February 20184January 20183December 20175November 20178October 20177September 20179August 20175July 20176June 201710May 20176April 20178March 201711February 20176January 201712December 20169November 20167October 201610September 201610August 20166July 20167June 20163May 20162April 20166March 20162February 20164January 20165December 20153November 20155October 20156September 20156August 20157July 20157June 20157May 20156April 20159March 20156February 201510January 20156December 20145November 20144October 20142September 20143May 20144March 20146February 20144January 20142December 20132November 20133September 20134July 20132June 20132May 20133April 20131March 20133February 20133January 20136December 20121November 20123October 20122August 20122July 20128June 20123April 20123March 20121January 20124December 20112November 20111October 20112September 20113August 20113July 20117June 20119May 20117April 20115March 20119February 20118January 20111December 20101October 20102September 20102August 20103July 20106June 20101May 20102April 20106March 20102February 20103January 20102December 20095November 20092October 20092September 20092August 20091July 20095June 20095May 20093April 20093March 20093February 20091January 20092November 20082October 20082September 20081August 20083July 20081January 20082

Featured Articles

Contact us