(Simon James Northcott) #1

I remain uncertain about the time deadlines for registration of trusts. Is the following a correct summary:

The TRS arises from UK regulations arising under the 4th money laundering directive, which came into force on 26.6.17.

This requires trustees of all express UK trusts, including possibly bare trusts and trusts of land (there is uncertainty over this), whether or not they have a tax liability, to maintain written records about beneficiaries etc. These are called Relevant Trusts.

A Taxable Relevant Trust is a relevant trust in any year in which its trustees are liable to pay income tax, cgt, iht, SDLT or stamp duty reserve tax-ie stamp duty on the sale and purchase of shares. This appears to include shares which are bought and sold on the stock market as well as off market transactions.

In relation to trusts in existence on 26.6.17 which were taxable relevant trusts in 2016/17 (or were already registered for self assessment), they must be registered by 5.12.17 (previously 5.10.17).

For a new trust, this must be registered by 5 October of the tax year after the trust is set up if it was a taxable relevant trust in that tax year. If no tax is payable in the year it is set up then the normal rule as to the 31 January deadline applies-see below.

In subsequent years, or where the trust is already registered for self-assessment, the trustees (or their agent) of a taxable relevant trust are required to provide beneficial ownership information about the trust, using the TRS , by 31 January after the end of the tax year.

Simon Northcott

(Raymond Magill) #2

I understand that a bare trust is an express trust and is therefore included among those whose trustees must comply with regulation 44(1) of The Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations, As such a trust is not itself taxable the trustees can ignore regulation 45 and the TRS…
I can see nothing in the Regulations to support HMRC’s contention that taxable relevant trusts that existed on 26 June 2017 should register any earlier than 31 January 2018.
I agree that trustees who have a liability to income tax or capital gains for 2016/17 but have not received a notice under S.9A TMA 1970 to file a tax return for that year had an obligation to notify HMRC by 5 October 2017. But that has nothing to do with the Regulations – unless HMRC are suggesting that trustees may comply with S.7 TMA 1970 by registering the trust with the TRS – and are offering a two month grace period. If that is the case, they should make their policy clearer.

Ray Magill