It was announced earlier this year that HM Revenue & Customs (HMRC) were launching an online system for the registration of trusts in the UK. The Trust Registration Service was launched on 10 July 2017, however agent access was only granted recently.
Who does this affect?
The obligation to register the trust forms part of your trustee responsibilities.
All trusts which have a liability to any form of tax (Stamp Duty, Capital Gains Tax, Income Tax or Inheritance Tax) in the tax year ended 5 April 2017 will need to register the trust with HMRC through this new service. Please note this registration is in addition to the completion of an annual tax return, and therefore even trusts which have previously registered with HMRC will need to register online.
What is required?
When completing the registration, you will require the original trust deed, as well as any additional deeds, in order to ensure you have the up to date trust information. You will need full details of all settlors, trustees and beneficiaries – including full names, address, date of birth and National Insurance or passport numbers. You will also need full details of all trust assets, including values.
This is much more detail than has previously been required for trust registrations.
What are the relevant deadlines?
If the tax year ended 5 April 2017 is the first year in which the trust will report tax liabilities and the trust does not yet have a Unique Tax Reference, then the deadline for registration of the trust has already passed and immediate attention is needed.
The deadline for all other trusts was originally 31 January 2018, but this has been extended to 5 March 2018.
Going forward, the deadline to register a new trust will be 5 October following the end of the tax year in which the trust was set up.
Following this initial registration, an annual verification that the details remain the same will be required and changes must be notified to HM Revenue & Customs before 31 January following the end of the tax year – so this can likely be done alongside the annual tax return.
Can we complete the registration on your behalf?
Where we already complete the trust tax returns as a client, a letter has been sent to you detailing the requirements, our fees, and a data sheet to complete and return should you wish for us to deal with the registration on your behalf.
If you would like us to deal with the registration on your behalf, please get in touch
