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August 1, 2022

IMPORTANT NOTICE – Action Required

Do you have an Investment that is written under Trust?  Or are you a Trustee under a Trust?

Then this notice could affect you!

The government has recently introduced new legislation relating to trusts and the Trust Registration Service (TRS).

Now any Trust, with certain exceptions, which hasn’t already been registered on the TRS, must be registered no later than 1st September this year, irrespective of whether the trustees have any tax to pay.

(Previously, only Trusts where the Trustees have incurred some type of tax liability have had to be registered on the TRS).

Consequently, the Trustee of a Trust will need to register it on the TRS by 1st September 2022 if they have not already done so.  In addition, Offshore Bonds held in Ireland require dual registration.

How to register your Trust

There are two possible options in terms of responsibility for registering a Trust:

  • The Trustees can authorise an ‘agent’ to register the Trust on their behalf – but it’s only possible to register as an agent if operating as an accountancy service provider (so this route would normally be used where the Trust already uses the services of an accountant and wants the accountant to register the Trust for them), or
  • The Trustees themselves can register the Trust, with one Trustee being designated as the ‘lead trustee’ for HMRC correspondence (for most trusts, the registration process is relatively straightforward).

Sutherland Independent are unable to register the trust on your behalf, as our business does not operate as an accountancy service provider, but below is information to help you register your Trust.

If the lead Trustee is registering the Trust, they must first obtain an Organisation Government Gateway user ID and password if they don’t already have one. This can be created the first time they register.

  • They’ll need a Government Gateway user ID for each Trust they want to register.
  • They’ll need to give an email address (this will be linked to the Trust’s Government Gateway account) and their full name.

Once the lead Trustee has registered the trust, if the Trust (trustees) is liable to tax, HMRC will send the lead Trustee a Unique Taxpayer Reference (UTR), usually within 15 working days. The Trustee will need the UTR to start filing self-assessment tax returns.

If the Trust (trustees) is not liable to pay tax, the Trustee can get their Unique Reference Number (URN) by logging back into the service following submission of the registration.

  • The Trustee can use the online serviceto view or make changes to their registered Trust.
  • They can get a PDF copy of the report to show proof of registration.
  • If the Trustee wants an agent to view or make changes to the Trust’s registration details, they must authorise themto do so.

Once registered there are certain changes that must be updated on the register within 90 days of the change.

And if the Trust is liable to tax for any tax year, the Trustees/agent must declare on the Trust register each year that the details of the persons associated with the Trust are accurate and up to date – even if there have been no changes. If the Trust is not liable to tax, there is no need to make an annual declaration.

Please see links to further guidance provided by HMRC: Register a trust as a trustee andManage your trust’s details.

Where the Trust holds an offshore bond based in Ireland:

In addition to the obligations already outlined, if the Trust relates to an Offshore Investment Bond based in Ireland, there is a further obligation to register the Trust on the Irish Central Register of Beneficial Ownership of Trusts information (revenue.ie).

The Trust must be registered therefore on BOTH the Irish and UK trust registers. Both registers require broadly the same information about the settlors of the Trust, the Trustees and beneficiaries and both can only be accessed digitally after completing the appropriate registrations for their online services.

Sutherland Independent recommend that you use the above link to view the instructions for registering on the CRBOT.

August 1, 2022