I can see this topic has been discussed before but I would be grateful if any forum members could comment on how they have entered details on the TRS for the settlors of the trusts arising under s.42 LTA 1987 for flat management companies. We are required to register as these are now taxable trusts. The leaseholders (and there could be several hundred!) are considered the settlors but you can only choose ‘individual’ or ‘business’…it’s impractical to enter details of every leaseholder or to write to HMRC with the same information.
I get a different response each time I ask HMRC and I am yet to get a satisfactory logical solution from them.
Would anyone mind sharing how they have approached registration in these circumstances?
May I please refer you to:
HMRC Internal Manual
Trust Registration Service Manual
TRSM 23110
Trust holding tenants’ contributions
Trusts holding tenants’ contributions are excluded from registration as express trusts when the trust is holding the contributions for the purposes of section 42 of the Landlord and Tenant Act 1987 (Sch3A(19) of the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017).
These trusts arise when tenants of dwellings pay a service charge under the terms of their lease for the services, repairs, maintenance, improvements or insurance or the landlord’s costs of management, all or part of which varies or may vary according to the relevant costs.
Maria - Hi
I don’t think these are taxable trusts as they are specifically excluded for two reasons - service charge funds held in trust ( the funds do not belong to the company) second settlors and beneficiaries are the same. The rules may have changed recently ?
We are planning to create as many trust funds as we need and invest in NSI. Each list of beneficiaries and settlors can be up to 99 names. Only reason not done it so far is the work of listing all those names - I agree with you. Do you have any suggestions?
These trusts are now receiving interest of over £500 and therefore have a tax liability. I cannot see how I can get a UTR without using the TRS…
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