New legislation requiring the registration of all trusts with UK tax liabilities came into effect on 26 June 2017. Most trusts will need to register by 5 December 2017.
Registration is required for trusts already within the tax self-assessment system as well as for new trusts. HMRC’s registration service is promised to be fully available in October 2017. In preparation for the new requirements, here are some FAQs:
When do trusts need to be registered?
The deadlines for reporting the required information are as follows:-
|Trusts already registered with HMRC for 2015/16 or earlier||31 January 2018|
|Trusts having a first ‘tax consequence’ between 6 April 2016 and 5 April 2017||5 December 2017|
|Trusts having a first ‘tax consequence’ between 6 April 2017 and 5 April 2018||5 October 2018|
What information will go on the register?
|Trust details:||the name of the trust, the date on which it was established, and where it is resident and administered|
|Trust assets:||valuations for each category of trust assets|
|Individuals:||the identity of the settlor, trustees, beneficiaries (including any potential beneficiaries) and any persons exercising effective control over the trust (e.g. protectors) including full name, date of birth and national insurance number|
Which trusts need to be registered?
All UK and offshore Trusts with a UK ‘tax consequence’ need to register. This is not only trusts that submit an annual tax return. As well as those liable to income tax and capital gains tax, trusts will also need to register if they have a liability to Inheritance tax, Stamp Duty Land Tax or Stamp Duty Reserve Tax
What happens if a trust is not registered?
Trustees who fail to comply with the disclosure requirements risk both fines and conviction of criminal offences.
How can Creaseys help?
We offer a full range of services to UK and offshore trustees including tax advice and compliance, registration requirements (CRS, FATCA, LEI, TRS) and accounting services.