Trust registration deadline

You may be aware that trusts need to be registered with HMRC using the Trust Registration Service (TRS). If you’re involved in a trust as a trustee that holds assets and pays tax each year, the trust will already be registered. However, we want to make sure you’re informed about the changes in rules and the need to register other types of trust that don’t necessarily pay tax.

Previously, non-taxable trusts didn’t need to be registered. However, you may now need to register any of the following: 

– Bare trusts holding stocks and shares for children or grandchildren

– Gift and loan trusts ​– usually set up through an insurance company

– Discounted gift trusts​ – again usually set up through an insurance company

– Pilot trusts created post 6 October 2020 for death benefits (or any pilot trust which holds funds exceeding £100)

– Will trusts still in existence two years or more from date of death

You have until 1 September 2022 to register via Government Gateway – you might get fined if you miss this!

You can access our guide to creating a Government Gateway account for a trust and the details you’d need to have to hand for the registration, here. This can’t be completed using your personal Government Gateway account.

There’s still no need to register the following trusts: 

– Trusts holding life policies that only pay out on death and can’t be surrendered

– Bank accounts held in the name of a parent for a child

– Pilot trusts set up before 6 October 2020

– Charitable trusts

– UK registered pension schemes

– Employee share scheme trusts (e.g. share incentive plan)

– Trusts imposed by legislation or a court order e.g. bankruptcy or tribunal

Full information can be found on the Gov.UK site Register a trust as a trustee – GOV.UK (www.gov.uk)

Visit gov.uk for further details.

If we’ve already contacted you about this, or your accountant or solicitor has it in hand, you don’t need to take any action. If you’re unsure whether it affects you, and you’d like to discuss it, please get in touch. 

Please note that this document is for guidance only and does not constitute advice. It is the responsibility of the trustee to register any trust correctly. You are recommended to seek competent professional advice before taking any action. This information represents our understanding of law and HM Revenue & Customs practice as 1st July 2022 and may change if legislation changes. Cooper Parry Wealth Ltd are authorised and regulated by the Financial Conduct Authority but please be aware trusts are not regulated financial products.