The TRS is an online service, provided by HMRC to register trusts and replaces the paper 41G forms. It is part of HMRC’s digital strategy and aims to provide greater tax transparency moving forward.
Following its original introduction, the scope of the TRS has been widened by the fifth money laundering directive (5MLD) to include most trusts, not just those where the underlying investments give rise to a tax liability.
The latest HMRC consultation proposed an extension for trusts registering for the first time until March 2022.
If you have set up a trust for estate or inheritance tax planning purposes, it is important that as Trustees you understand your responsibility for registering with the TRS.
The new proposed dates for registration are:
There are some exemptions based on the premise that they don’t present many risks with regards to money laundering or terrorist activity, as individuals can’t easily manipulate the terms of the trust. These include:
Bare trusts were also thought to be exempt, but HMRC is still considering the risks associated with these.
Trusts already registered in another EU Member State would also be exempt under UK registration proposals.
The UK tax system is complex, and legislation is continually changing. Regular trustee meetings with one of our financial planners will help you to be safe in the knowledge that you are meeting your obligations.
For further information or to arrange an initial no-obligation consultation at our offices or another mutually convenient location, please telephone us on 01772 729 742, or alternatively, simply fill out our online enquiry form and we will give you a call to discuss your requirements.