Wills Trust and Property Protection Trust – register it now

Suzanne Porter Suzanne Porter 18 January 2022

The scope of Trusts that have to be registered with the Government has been significantly widened - with action needed by many lay Trustees.

Trustees obligations, as part of the Fifth Money Laundering Directive to maintain and provide information about trusts and their beneficiaries to HMRC’s Trust Registration Service, have been expanded for certain types of Trusts.

The types of trusts that will need to be registered now include:

UK express trusts – in the format of Wills Trust/Property Protection Trust

Non-UK resident trust acquiring UK real estate

Non-UK trusts with UK trustee entering into a business relationship with a UK obliged entity

Pension trusts

Complex estates

Suzanne Porter, director and head of the private client team at Wake Smith, discusses how Wake Smith can register Trusts taking the stress and time away from the Trustees.

“HM Revenue & Customs have now made it a mandatory requirement to register a Trust on their online Trust Registration Service, including an express Trust, which is created by a persons Will and comes into effect on their death.

“This means there will be a large number of trusts that are now required to register, many with lay trustees.

“There has been concern that this will drastically increase the compliance burden on trustees and mean that some trustees may be in breach of the registration requirements without even being aware of them.

“Late spouses’ Wills do include Express Trusts in the format of a Property Protection Trust and as a Trustee of the Will Trust, it is their duty to register that Trust on their online service.

“Many people will not be aware of this requirement and know what to do to exact the registration and avoid untimely reminders and financial penalties.”

The deadlines

Draft regulations to extend the deadlines imposed on trustees for registering with, and updating information about trusts with the Trust Registration Service (TRS) have been published.

The draft Money Laundering and Terrorist Financing (Amendment) Regulations 2022 amend the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017.

The draft proposals, if approved by Parliament, come into force on 9 March 2022.

Trusts originally required to register by 10 March 2022 now have until 1 September 2022.

Registration deadlines for trusts that become registerable after 1 September 2022 will have 90 days rather than 30 days.

There is also an extension to 90 days for the time limits for trustees keeping information held on the TRS up to date.

What is the UK Trust Register?

The register was started in 2017 and has two objectives:

To act as a vehicle for trusts which are liable to UK income tax or capital gains tax to register with HM Revenue & Customs (HMRC)

To maintain a central register of the beneficial ownership of tax paying trusts and fulfil the UK’s obligation under the EU’s Fourth Money Laundering Directive.

All trusts which have UK tax liabilities (income tax, capital gains tax, inheritance tax or stamp duty) are liable to register, whether or not the trustees are UK resident.  It is not a public register with the information only available to government authorities.

If you have any queries about trusts, registering trusts or exclusions please contact Suzanne Porter at Wake Smith on 0114 266 6660.

Tags

Archive

March 20247February 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