HMRC’s Trust Registration Service for Trustees

Please act immediately and contact DNS without delay if this is likely to affect you, as the deadline for existing trusts to register online for the Trust Registration Service (TRS) is 31 January 2018, but trusts with a UK “tax consequence” for the first time in 2016–17 only have until 5 January 2018 to register.

The Trust Registration Service (TRS) online service replaces the paper 41G (Trust) form withdrawn at the end of April 2017. Registration online is now the only way trusts and complex estates can obtain their Self-Assessment Unique Taxpayer Reference.

And beware, because although HMRC provides“a single online service” for trusts to comply with their registration obligations, the technology has experienced some issues. Youshould act now to make sure you’re complying with the new rules before the deadline

What is Trust Registration Service (TRS)?

A trustee is responsible for reporting and paying tax on behalf of the trust of which he/she is a trustee. If there is more than one trustee then one trustee must be nominated to manage the trust’s tax.

The Trust Registration Service (TRS) is another element of Making Tax Digital and it is also being introduced to satisfy the transparency demands of new EU tax legislation related to disguised remuneration, anti-avoidance, and money laundering. The changes coming into force will affect the reporting obligations of trustees and will affect the obligations of the trust’s/trustee’s accountant or financial representative to report information about trusts. There are certain other rules which does affect the trusts.

Under Trust Registration Service (TRS), specific information must be reported to HMRC concerning the beneficial owners of the trust. The beneficial owners are defined as the settlor(s), trustees and beneficiaries, or persons who have control or influence over the trust of trust property on an annual basis.

These rules will apply to any trust that has a "UK tax consequence" for 2016–17. However, it is always important to maintain your books of record.

What does this mean?

The new rules apply where the trustees are liable to UK taxes:Income Tax, Capital Gains Tax, Inheritance Tax, Stamp Duty Land Tax, Land and Buildings Transaction Tax, and Stamp Duty Reserve Tax.

Trusts must supply their accountant or representative withall data relating to the trust and this must be passed on to HMRC. All data includes anythingin relation to actual and potential beneficiaries (including classes of beneficiaries, e.g. "future unborn grand children"). This is what will form the basis for a Trust Register

The deadline for existing trusts to register for the Trust Registration Service (TRS) is 31 January 2018 but trusts with a UK tax consequence for the first time in 2016–17 must act now as they only have until 5 January 2018 to register online.

Any beneficial owner of a trust hoping for anonymity no longer has anywhere to hide. Everyone involved is liable and so it’s unlikely any self-respecting cautious accountancy professional is going to want to hide anything for any trust or trustee.

Contact DNS today without delay if you have interests in a UK trust or an overseas trust or assets in an overseas or UK trust. After 30 September 2018 heftypenalties will apply.

Trust Registration Services Contact Number

About the author

Sumit Agarwal
Sumit Agarwal (ACMA ACA India), the Managing partner of dns accountants is a highly respected accountant with expertise in helping owner-managed businesses.