On the 1st September 2021 HMRC opened the Extended Trust Registration Service, meaning that significantly more UK trusts will have to be registered, irrelevant of whether they have tax liabilities.
The new rules were introduced as part of the EU’s Fifth Money Laundering Directive (5MLD). Previously only ‘taxable relevant trusts’ ie. those that are liable for UK tax had to be registered (unless they fall into one of the exempt categories). The other main change is that third parties will have access to the register, in order to fulfil the M5LD requirement for the UK to maintain a central database of trust ownership.
Trusts which are already registered will have to provide additional information about the beneficial owners. The deadline for registration of non-taxable trusts is 1st September 2022. For more information on the Extended Trust Registration Service, check out HMRC’s Trust Registration Service Manual.
Back in 2017 FPC worked with our clients’ accountants and solicitors to ensure that all trusts that required registration were dealt with. We are currently reviewing our clients affairs to identify which trusts need to be registered this time round as, again, there are exemptions. We will be contacting all affected clients early in the New Year to ensure they are aware of their obligations and provide assistance where required.