15 Mar 2022
Do you have any Trusts? Is it time to register them?
It is now a requirement that all express trusts (meaning any trust which is written down), unless exempt, have to be registered with Her Majesty’s Revenue and Customs (HMRC) before September 2022 to make sure you and the trust comply with anti-money laundering regulations.
This was previously a requirement if a trust was liable to taxation, but now, this rule applies if the trust is or is not liable to pay tax.
A list of some of the trusts that are exempt is as follows:
- Trusts for UK pension schemes
- Trusts for UK life/critical illness policies
- Charitable trusts
- A ‘pilot’ trust set up before 6 October 2020 and holding no more than £100 — pilot trusts set up after 6 October 2020 will need to register
- A co-ownership trust set up to hold shares of property or other assets which are jointly owned by 2 or more people for themselves as ‘tenants in common’
- A Will trust created by a person’s Will and coming into effect on their death providing they only hold the estate assets for up to 2 years after the person’s death
- A trust 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
- A ‘financial’ or ‘commercial’ trust created in the course of professional services or business transactions for holding client money or other assets
Examples of trusts which must now register, are one which was created by Will but still exists after two years, or a trust set up to invest for the benefit of your children or grandchildren.
We have contacted all the clients we think this new legislation applies to. If you have any trusts, and they are not exempt as per the list given above, then please register your trust as soon as possible, and definitely before the deadline of September 2022.
Registration can be carried out online using the link below, which also provides further details on the subject.