If you are a Trustee of a Trust then you must register your Trust with the Government’s Trust Registration Service;
To make sure that you and the Trust comply with anti-money laundering regulations
To get a Unique Tax Payer Reference (UTR), even if the Trust is exempt from Tax
You must register the Trust if it becomes liable for any taxes which includes Capital Gains Tax, Income Tax, Inheritance Tax, Stamp Duty Land Tax, Stamp Duty Reserve Tax, Land & Buildings Transaction Tax (Scotland) and Land Transaction Tax (Wales).
You must also register if your Trust has no tax liability, if it is a UK Express Trust (unless specifically excluded – see below) and all non-UK Express Trusts.
Trusts that do not need to register unless they are liable for tax:
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 pays out on death, terminal or critical illness or permanent disablement.
Trust holding insurance policy benefits received after the death of the person assured, as long as the benefits are paid out within 2 years of death
Charitable Trusts that are registered within the UK
Pilot Trusts set up before 6 October 2020 and do not hold more than £100.
Co-ownership trust where it is held for themselves as “tenants in common”
Will Trust that comes in to effect on death and only holds assets for up to 2 years after death.
Trust for bereaved children under 18, or adults aged 18 to 25.
Financial or commercial trust created during the course of professional services or business transactions for holding client money or assets.
When do I need to register?
Trusts created on or before 6 October 2020 – deadline is 1 September 2022
Trusts created after 6 October 2020 – within 90 days of it being created, becoming liable for tax or on or before 1 September 2022 (whichever is later).
Trusts created on or after 6 April 2021 – within 90 days of the trust becoming liable for tax or before 1 September 2022 (whichever is later).
Trusts created before 6 April 2021 – has to be registered before 5 October in the tax year after the one in which the trust starts to receive any income or has capital gains, and becomes liable for Income Tax or Capital Gains Tax.
Trusts that have been liable for tax before – 31 January in the tax year after the one in which the trust receives assets that means it is liable for tax.
For more information, please see the www.gov.uk website or speak to an accountant.
How To Register
You need to have a Government Gateway user ID and password. If you do not have one, you can create one.