HMRC have a Trust Registration Service (TRS) and historically only Trusts that had a UK Trust liability needed to be registered, however there is now a requirement for most UK express Trusts and some non-UK Trusts to be registered even where there is no tax liability.
Elite Law Solicitors have registered as an agent with HMRC and are now able to register Trusts on behalf of our clients.
All applicable existing Trusts should be registered by 1 September 2022 or within 90 days of the Trust being set up, whichever is the later.
If you are the Trustee of a Trust which has not yet been registered Elite Law Solicitors can register it for you for a fixed fee of £250 plus Vat (reduced to £125 plus Vat if it is a Trust that we set up for you in the last twelve months). There is also a charge of £38 plus Vat to electronically verify the identity of each Trustee (this does not apply if we have done this in the last twelve months).
Which Trusts do not need to be registered?
The following express Trusts do not need to be registered unless there is a UK tax liability:
- Trusts used to hold money or assets of a UK registered pension scheme
- Trusts used to hold life or retirement policies providing that the policy only pays out on death, terminal or critical illness or permanent disablement, or to meet the healthcare costs of the person assured
- Trusts holding insurance policy benefits received after the death of the person assured as long as the benefits are paid out from the trust within 2 years of the death
- Charitable Trusts that are registered as a charity in the UK or which are not required to register as a charity
- Pilot Trusts set up before 6 October 2020 which hold no more than £100
- Trusts set up to hold shares of property or other assets in defined shares between all of the legal owners (for example Declarations of Trust)
- Will Trusts which come into effect on death providing they only hold the estate assets for up to 2 years after the person’s death
- Trusts for bereaved children under 18, or adults aged 18 to 25, set up under the will (or intestacy) of a deceased parent or the Criminal Injuries Compensation Scheme
- ‘financial’ or ‘commercial’ Trusts created in the course of professional services or business transactions for holding client money or other assets
Trusts which are imposed by courts or created by legislation, are not express trusts and so do not have to register unless they have a UK tax liability. These include Trusts which are set up by:
- The intestacy laws when a person dies without a valid will and the assets in the estate are held by a trust before passing to relatives; or
- A court order to hold compensation payments
Which Trusts need to be registered?
Most UK express Trusts which do not fall into the categories above need to be registered, these include but are not limited to:
- Pilot Trusts set up before 6 October 2020 holding more than £100
- Pilot Trusts set up after 6 October 2020
- Trusts set up to hold property or assets on behalf of other people
- Declarations of Trust relating to property where a third party (who is not a legal owner of the property) has an interest in the property
- Will Trusts which continue more than two years after the date of death
How can we assist?
How can we assist?We can advise you whether your Trust needs registering and if it does we can register it for you.
Meg Wilton is a Chartered Legal Executive and the Head of our Private Client department and has many years of experience in setting up all types of Trusts.
Meg can provide specialist legal advice and would be happy to offer advice and guidance on your specific situation. As well as office meetings, Meg offers remote meetings to clients via telephone and video conferencing software so can assist you wherever you are based.
Make A Free Enquiry
If you require legal advice or assistance or have any queries relating to any of the issues discussed in this article, please get in touch with Meg by calling 0800 086 2929, emailing info@elitelawsolicitors.co.uk or completing our Free Online Enquiry Form.
The content of this article is for general information only. The information in this article is not legal or professional advice. If you require legal or professional advice you should obtain independent expert advice from qualified Private Client solicitors such as those within our firm.
