A freeview guide.

At a glance

• UK trusts are required to be registered with HMRC under an online registration system, the Trust Registration Service (TRS).
• The timeline for registration as follows:
  • From July 2017 all trusts with UK tax liabilities were required to register.
  • 1 September 2022:
    • Non-UK trusts are required to register where they acquire land or property in the UK or have at least one trustee resident in the UK and enter into a ‘business relationship’ within the UK.
    •  All UK express trusts, including non-taxable express trusts are required to register.
• An express trust is a trust deliberately created by a settlor:
  • Express trusts can be created either during a lifetime or on death.  
  • Exemptions from registration apply.
  • Trusts created through the operation of the law and that do not result from the clear intent or decision of a settlor to create a trust or similar legal arrangement are not included (e.g. constructive or implied trusts). 
• A new trust with liabilities for Income Tax or Capital Gains Tax (CGT) must register by:
  • The latter of 90 days from the trust becoming liable to tax and 1 September 2022.
  • The deadline was different for trusts created before 6 April 2021, these were required to register by 5 October following the tax year in which the settlement is created or the tax liability starts. 
• Trusts with other tax liabilities, including, Inheritance Tax (IHT), Stamp Duty Land Tax (SDLT), Scottish Land and Buildings Transaction Tax  (LBTT), Stamp Duty Reserve Tax and Welsh Land Transaction Tax (LTT) must register by:
  • The latter of 90 days from the trust becoming liable to tax and 1 September 2022.
  • This deadline was different for trusts created before 6 April 2021, they were required to register by 31 January following the end of the tax year in which the liability starts for trusts created (or liability starts).
• Registrable taxable trusts are required to report the value of the trust assets on registration as well as on the trust tax return.
• The TRS deadlines may be overtaken if the trustees sell UK residential property at a gain.
  • The deadline for reporting such gains and paying the tax is 60 days for disposals on or after 27 October 2021 (30 days for disposals before this date). This requires the trust to be registered under TRS and a Unique Taxpayer Reference (UTR) issued. See Reporting capital gains: How to?
• A taxable trust which existed when TRS was introduced, and which already had a UTR, should have registered online by 5 March 2018.
• The online record must be kept updated for changes in the beneficiaries and trustees.
  • Changes to certain information must be notified within 90 days of the change. 
  • Unreported reportable changes, or confirmation that there are no changes, must be notified by 31 January following the end of the relevant tax year.
• Agents can register to use the TRS here.
• Penalties can be charged of up to £5,000 for failing to register a trust on time or failing to keep the information up to date. 
  • HMRC have confirmed that, provided there is no deliberate behaviour, there will be no penalty for a first offence.

Further compliance

• The trust register is not currently public. The information is available to law enforcement agencies in the UK and other EEA countries including HMRC, the Financial Conduct Authority, the National Crime Agency, various UK police services and the Serious Fraud Office.
• For Anti-Money Laundering compliance, any AML-regulated business that is entering into a business relationship with a UK trust must check that it has been registered with the TRS.

Useful guides on this topic

Acting for a trust? Start here?
Our essential guide for advisers and trustees on how to manage the tax affairs of a UK trust and how to avoid common pitfalls.

How to set up a UK trust
What are the tax implications of setting up a trust? What do I need to do as a settlor? What do the trustees need to do? 

How to wind up a UK trust
What are the tax implications of winding up a trust? What do I need to do as a trustee to wind up a trust? Why wind up a trust?

Non-resident trusts
When is a trust non-resident? What are the UK tax implications of a non-resident trust? What are the UK tax implications for any beneficiaries? What are the UK administrative requirements for a non-resident trust?