UK Trust Registration Service
If you're a trustee, or you administer or benefit from a trust, it's important that you understand how the introduction of the UK Trusts Register may affect you and your trust.
What is the trust register?
The Trust Register is now the only way that trusts can be notified to His Majesty’s Revenue & Customs (HMRC) for self-assessment tax purposes. It is imperative that trustees of all new and existing trusts (whether UK based or offshore) assess whether they fall within the registration requirements and take action accordingly.
The Register was introduced in June 2017 and at that time trusts were only required to be registered where there was a UK tax liability. In October 2020 new legislation was introduced to capture all trusts, regardless of whether they have a UK tax liability.
Non-UK trusts will also be required to register if they have UK tax liabilities. In addition to this, non-UK trusts are required to register if at least one of the trustees is a UK resident and where the trustees enter into a business relationship with a UK service provider (for example lawyers, accountants and investment managers) or acquire an interest in land in the UK.
We've answered some frequently asked questions to help trustees navigate this new regulation - but please note that details are subject to change.
Our team of trusts experts is ready to help trusts and trustees with the registration process. If you would like to register a trust with HMRC, please contact us to find out more about what we can do for you.
Frequently Asked Questions
We talk to people everyday about their trusts. These legal matters are so important but they’re not always easy to understand, especially when you’re just starting out and trying to understand what help is available and how it can get you where you need to be. Here are some of the questions we hear most often.As an EU member state, the UK was required to implement the EU’s Fourth Anti-Money Laundering Directive (4MLD) into its own domestic law. This was accomplished with the publication of the Money-Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations on 22 June 2017.
- 4MLD - This is an EU directive aimed at strengthening the European Union's defences against terrorist financing and money laundering.
- The Fifth Money Laundering Directive (5MLD) - This is an expansion of the 4MLD and introduced changes to the electronic identification and verification, enhanced due diligence, politically exposed persons, and beneficial ownership information. It also introduced new guidance on areas like cryptocurrencies and prepaid cards.
The Regulations introduced a legal requirement for trustees of certain trusts to register information about the trusts and related individuals with HMRC.
Although these regulations were motivated by an EU directive, they will remain a part of UK law post-Brexit unless any further action is taken by the UK government.