The UK government has enacted regulations bringing into force the EU Fifth Anti-Money Laundering Directive (5AMLD).
However, the provisions relating to trust registration will be delayed until later in 2020, following a more detailed technical consultation on implementation.
5AMLD requires not just public access to the trust register, but also that it is extended from trusts with UK tax consequences to include all express trusts. This will extend the number of registrable trusts from around 200,000 to as many as two million.
HMRC stresses that the Trust Registration Service will have to contain a ‘robust and proportionate framework’, and the consultation will include additional information on the proposals for the type of express trusts that will be required to register; data collection and sharing provisions; and penalties.
Although this will undoubtedly create a lot of work for those registering, it is good news that time is being taken to ensure the software is ready and the type of trust being defined.
Lambert Chapman LLP