The TRS has been introduced from June 2017 as part of the crackdown on money laundering and will require all (both existing and new) trusts with potential income tax and capital gains tax liabilities to be registered online via this service.
The register is also a single point of access for trustees/agents to register and update their records online. The trustees are responsible for ensuring the trust register is accurate and up to date on an annual basis.
Going forward, any new trusts will no longer use a 41G form to register trusts with HMRC and obtain a UTR number. Instead they will use the online TRS.
The register requires the following details to be disclosed:
- Details and value of each trust asset
- Details of the settlor, trustees, protector (if any), beneficiaries/class of beneficiaries, etc. In particular, the information required will be the name, date of birth, NI number (UK resident only and excludes minors), address and passport number (ID number for non-UK residents)
Trustees have until 5 October following the end of the tax year to register new taxable trusts. However, as a concession, HMRC has confirmed they will not penalise anyone so long as they register by 5 December 2017 for the 2016/17 tax year only.
If the trustee’s agents are registering the trust, the agent must create an Agent Service account. This is not currently available online unless you are already working with HMRC’s limited pilot system for its Making Tax Digital project.
Instead, each individual agent is required to email HMRC requesting to join the service. The email should be sent to email@example.com with the subject line ‘request access for agent services’. HMRC will then send a web link giving access to Agent Services and guidance on how to subscribe to the TRS service.
The government gateway credentials will be required to sign in.
It is expected that the Agent Service will be fully live for agents by the end of October or the beginning of November, though this may be subject to change.
Existing trusts which have already been registered with HMRC (via the 41G form) should note that none of the information will have been transferred across to the online TRS. Beneficial ownership information must be supplied by 31 January 2018 for UK and non-UK trusts that are already registered for self-assessment or do not require a registration but will incur a liability for the 2016/17 tax year.
In all other cases, you should be able to register the trust(s) online via the Government Gateway service.
If you require any further information on Trust Registration Service (TRS) or related matters, please ring the TaxDesk on 0845 4900 509 and ask for Reena Bhudia.