New Regulations in Respect of Trust Registration (UK – Important Information).

The current position is that a Trust must be registered with the HM Revenue and Customs (HMRC), through the Trust Registration Service (TRS) if it suffers a Tax consequence.

That is generally accepted to mean that if the trust receives income, that income is taxable, and a tax return should be made to HMRC, and registration should be made before the tax return.

The general accepted principal to date, is that if no income is being received in the trust, then this does not have to be registered with the Trust Registration Service.

New Proposal, New Law Effecting Trustees.

It is now proposed under the Fifth-Anti-Money laundering directive (5MLD) for any existing unregistered trust, must now be registered by the trustees, regardless of whether or not they have a tax consequence, or indeed any income.

Although the directive came into force in the UK on 10th January 2020, the element relating to trust registration has been cancelled until further notice.

We will continue to monitor this procedure and advise through our website articles, but it is only a matter of time when all trustees will need to register their trusts that they are operating.

Tel: 01684 291469

Contact us.