If you are a trustee of a trust you will need to make sure you are familiar with the new rules in relation to the registration of trusts with the HMRC. There have been changes in recent years to ensure that HMRC is aware of all trusts within the UK. Certain trusts already need to be uploaded to the UK trust register. This has not included trusts which are non-taxable, until now.
Until recently all trusts which did not generate income or capital gains, and did not require the completion of an tax return did not need to be included on the register. Now, trusts which do not generate income or capital gains and do not need a tax return must be registered on the trust register by 1 September 2022, unless they are specifically excluded.
If a trust becomes registerable after 1 September 2022 there will be a 90 day window in which trustees must register the trust on within the registration system. The same window will apply if an amendment must be made to the trust details.
This new change is going to make the ongoing work required by a trustee more complex and add an additional layer of compliance responsibility that must be observed to avoid falling foul of HMRC sanctions.
If you are a trustee and do not know how these changes will affect any trust you have responsibility for and do not know where to begin please give us a call for more help and support.