Register your Trust

If you've ever set up a trust, this is important!

HMRC have set up a Trust Registration Service – and every trust must be registered before 31^st August 2022. If you don't register your trust there are penalties.

Trusts are complex entities and there are tax implications as well as penalties to consider. Ideally you need a specialist tax advisor to ensure your trust is not only set up correctly, but registered with HMRC properly.

Trusts can come in many guises and be set up for various reasons. For example, to protect the property of an elderly relative from being taken to pay care costs in the event they are moved into a home, or as part of your family's inheritance tax planning. Some may already be registered with this new service, but its best to check.

Why has this issue suddenly appeared?

It's part of an EU directive put into place prior to our exit from the EU and is intended to reduce money laundering, tax evasion and fraud. Until recently it has not been required, but now it is a legal requirement and must be complied with.

What to do

If you think you have a trust – or someone in your family has set one up – don't delay in taking action. These trusts are easy to overlook, especially if they've been set up a long time ago.

The first step is to register your trust with HMRC.

If you're not sure if your trust needs to be registered or are simply confused by the options, talk to a tax accountant. It's better to get it right now than end up being penalised with a fine.