IN 2017, with little fanfare, the Trust Registration Service (TRS) was introduced to require all taxable trusts to register their beneficial ownership. This information was available to HM Revenue and Customs and other law-enforcement bodies but not to others.
The TRS is now being extended and from September all UK express trusts and some foreign trusts with UK assets or income must register. In addition, third parties with a legitimate interest will be able to request information on the trusts.
What trusts will be required to register?
It is easier to say which trusts are NOT required to register! Charitable trusts are exempt, along with Child Trust Funds. Trusts for bereaved minors are also exempt, but please note that these trusts are a very specific type – not every trust which is set up to benefit a bereaved minor qualifies for this exemption.Almost all other trusts require to be registered.
What information does the TRS require?
They will need the name and date of creation of the trust, details of the trustees and the assets held in the trusts.
They will then require personal information on each of the settlor (i.e. the person who created the trust), the trustees and the beneficiaries. There is more information required if the trust is liable to tax.
Trustees will also be expected to inform the TRS of any changes to the trust in the future (e.g., new trustees, new assets acquired etc).
If you think you may be a trustee or a beneficiary of a trust which will need to be registered, you should either register the trust now or instruct your professional advisers to do so.
It may take some months to ensure all the information is available and up to date so the sooner the process is started the better. If you require any assistance or would like to discuss this matter further, please do not hesitate to contact us.
:: Anne Wilson (anne.wilson@mckees-law.com) is an associate in the private client team of McKees
