HMRC Trust Registration Service & Our Clients

In accordance with new UK laws implemented under the Fifth Money Laundering Directive on 6th October 2020, we will not be acting as Agent of Lay Trustees in the registration of applicable Trusts.

This decision has been taken by Longden, Walker & Renney (the firm) after significant due diligence, a risk assessment and discussions with our professional insurers.

As a result, it is considered too high risk for us to act as Agent of Lay Trustees.

The article below explains the current position under UK law and explains why we have taken this decision.

Should you wish to discuss the matter further, please call 0191 5666 500 and arrange an appointment with Laura Brydon, Head of our Wills, Trusts & Probate Division.

TRS – Trust Registration Requirements & UK Law

New rules were introduced on 6th October 2020, as part of the UK’s implementation of the Fifth Money Laundering Directive (5MLD), which extended the scope of the Trust Register to most UK and some non-UK Trusts that are currently in effect, whether or not the Trust is liable to Tax.

The extension of the Regulations now captures most non-taxable Trusts within the Trust Registration requirements with some specific exclusions.

As the Trust Registration requirements are designed to support Anti-Money Laundering and Counter Terrorist Financing activities, the details Trustees will be registering will be available to those with legitimate interests in preventing such activities, e.g. Law Enforcement Agencies.

The deadline for registering

The deadlines for registering applicable Trusts are as follows:

• For Trusts created on or before 6th October 2020 – by 1st September 2022;
• For Trusts created after 6th October 2020 but before 1st September 2022 the later of:
• 1st September 2022; or
• 90 days from the date the Trust was created;
• For Trusts created on or after 1st September 2022 – within 90 days.

It is the responsibility of the Trustees to register the Trust, if applicable. If a Trust that should be registered is not then penalties may be imposed by HM Revenue & Customs (“HMRC”).

How do I register my Trust?

Trusts need to be registered online using the instructions provided at the following HMRC site – https://www.gov.uk/guidance/register-a-trust-as-a-trustee

All Trustees are equally legally responsible for the Trust, but a “Lead” Trustee must be nominated to be the main point of contact for HMRC.

Updating the Trust Registration Service

Once the Trust is registered, if there are any changes to the Trust details or circumstances you will need to provide updated details to the Trust Registration Service.

This will include where any non-taxable Trust becomes liable for Tax for the first time.

Once a Trust becomes taxable this then creates additional requirements regarding the information to be held on the Trust Register and notifications to HMRC. The deadline for any notifications will depend on the circumstances of the changes.

Further information on these requirements and deadlines can be found on the Government website – https://www.gov.uk/guidance/manage-your-trusts-registration-service

HMRC’s TRS Manual provides further content in relation to this matter and is reviewed/updated regularly – https://www.gov.uk/hmrc-internal-manuals/trust-registration-service-manual 

HMRC Trust Registration Service & our position at Longden, Walker & Renney

Having considered the matter carefully, we (the firm Longden, Walker & Renney) will not be acting as Agent of Lay Trustees in the registration of applicable Trusts.

We, of course, will have to register those Trusts of which we are Professional Trustees.

Having undertaken significant due diligence, undertaken a risk assessment and looked into the matter with our professional insurers, it is considered too high risk for us to act as Agent of Lay Trustees.

We are required to inform our clients of the new Regulations. However, due to GDPR we cannot rely on the data we hold for Lay Trustees (their addresses etc) being current and/or correct and we cannot therefore attempt contact via the likes of a Mail Drop. We therefore want to give “Notice” of our position here (on this website).

Any relevant current Clients will be informed as we become aware of the potential need for them to register their Trust.

If you need to discuss this further, please call 0191 5666 500 to arrange an appointment with Laura Brydon, Head of our Wills, Trusts & Probate Division.

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