What you need to know about the new online Trusts Register

29 August 2017

What is it?

The new Trust Register has been introduced as part of the UK’s implementation of new directives around “Money Laundering” and will provide a single point of access for trustees and their agents to register and update their details online. 

Complex estates will need to use the service to obtain a Unique Taxpayer Reference.

Mandatory adoption of the new register aligns with HMRC’s digital strategy, providing for greater tax transparency.

Is my trust affected?

If, in any year, the trustees incur UK liabilities for Income Tax, Capital Gains Tax, Inheritance Tax, Stamp Duty Land Tax or Stamp Duty Reserve Tax then the trust is considered to have a UK tax consequence and will need to be registered. This includes trusts which have previously registered with HMRC using the 41G(Trusts) form. 

What information will need to be provided?

Trustees will be required to provide general information about the trust itself, such as:

  • name of the trust
  • the date on which it was established
  • details of the trust assets including addresses and values

HMRC also require the following information to confirm the identities of the settlor, the trustees, the beneficiaries, any class of beneficiaries where an individual cannot yet be determined, and any individual who has control over the trust:

  • full name
  • date of birth
  • National Insurance number or Unique Taxpayer Reference, if available – unless a minor
  • an address and passport or ID number for non UK residents, if there’s no NI number

What are the implications?

If an agent deals with HMRC on the trust’s behalf there is likely to be an additional time cost because the level of reporting is higher than before.  Just how much extra chargeable time will depend on the size and complexity of the trust in question. 

Going forward, trustees or their agent will also need to update the register in each year in which the trust has a UK tax consequence.

Old Mill will be contacting trust clients during the course of preparing the 2016/17 trust tax return to provide updates on the registration process and to obtain any outstanding information.

For more information contact Andrew Langdon 01935 709405 or email andrew{dot}langdon{at}oldmillgroup{dot}co{dot}uk

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