The TRS will provide a single online route for trustees and personal representatives of estates to notify HMRC of their existence to obtain a UTR number, comply with registration obligations and notify HMRC of changes in circumstances.
In addition to implementing the requirements of The Money Laundering, Terrorist Financing and Transfer Funds Regulations 2017 it reinforces HMRC’s digital strategy and assists in improving tax transparency going forward. HMRC may share data contained in the TRS with the UK law enforcement authorities.
If a UK Trust, non UK Trust which receives UK source income or has UK assets on which the trustees have incurred a liability, or a complex Estate where informal reporting is not agreed; incur a liability to income tax, capital gains tax, inheritance tax, stamp duty land tax, stamp duty reserve tax; or land and building transaction tax (Scotland) registration is compulsory.
A trust or estate already registered for Self Assessment (SA) will need to complete the trust registration by 31 January following the end of the tax year in which the trustees incurred the liability. If a liability arises and the trust or estate is not registered for SA the registration must be completed by 5 October following the end of the tax year in which the first liability arises.
The responsibility to register lies with the trustees, but they may appoint an agent to register on their behalf. For trusts with liabilities in the year ended 5 April 2017 the agent registration deadline has been extended to 5 March 2018 and HMRC have indicated that no penalties will be charged for registrations received by that date.
The registration process requests personal information about the settlors, trustees, beneficiaries and details of the assets originally settled. It is then the responsibility of the trustees to update the register as required by 31 January following the end of the tax year in which there are any changes.
MHA Chiks are providing online registration and maintenance services to trustees where clients have formally agreed to this service.
If you would like to engage MHA Chiks, please contact Alison Houghton Private Client Manager in our Preston office. If you would like to be put in contact with a member of our Tax team, please call 01772 821021.