HMRC has opened the Trust Registration Service to all non-taxable trusts. The deadline for registering these trusts has been extended to 1 September 2022. ICAEW’s Tax Faculty can confirm that trusts relating to healthcare policies and children’s bank accounts will not be required to register.
New rules which came into force on 6 October 2020 require all UK express trusts and some non-UK trusts to register with HMRC. This includes non-taxable trusts unless the trust is specifically excluded.
The Trust Registration Service is now accepting registration of non-taxable trusts and trustees and agents should take steps to register relevant trusts.
Details of trusts that need to be registered and those that are excluded can be found on gov.uk with additional technical information available in the Trust Registration Service Manual.
HMRC has advised that, in line with the original policy intention, amendments will be made to the legislation to clarify that all healthcare policies held in trust, including those that are not part of a wider life policy, are excluded from registration.
Amendments will also be made to ensure that trusts required to open a bank account for a child are excluded from registration.
The Tax Faculty highlights that the relevant deadlines for registration are:
- Non-taxable trusts in existence on or after 6 October 2020 must be registered by 1 September 2022.
- Non-taxable trusts created after 1 September 2022 must be registered within 90 days of creation.
- Changes to the trust details and/or circumstances must be notified within 90 days of the change.
These deadlines allow more time than is set out in current legislation; the legislation will be amended to reflect the position explained above.
To register a trust as a trustee, go to gov.uk/guidance/register-a-trust-as-a-trustee and click on the “register now” button.
To register a trust as an agent, go to gov.uk/guidance/register-your-clients-trust and click on the “register now” button.
If there is a problem using the service, the user should raise a ticket by selecting “Get help with this page” on the appropriate page within the service. Enquiries can also be directed to the trusts helpline.
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