Trust registration

Trusts Discussion
1

I would welcome advice on one aspect of the TRS. The requirement is to set out details of the trust assets when the settlement/trust commenced.
I will be registering a number of fairly ancient will trusts (ie 40/50 year old) where it will be well nigh impossible to find out what went into the trust originally, and what the value of the assets was at the time. I have no wish to carry out hours of research to provide useless information to HMRC at the cost of my clients.
Should I just estimate a cash figure and put it in, or is there any other way to fill in the form and proceed to register.
John Randel
Lee Bolton Monier-Williams

2

HMRC guidance suggests that you should choose the ‘other’ option put ‘already notified’ as narrative and value GBP1
Maxine Higgins
Citroen Wells

2 Likes
3

On Page 22 of HMRC’s FAQ’s Guidance of 22 November last year is the question and answer:
What happens if the trust was set up several years or decades ago and we have no way of knowing the value of assets at the time when the trust was set up?
If you are registering a trust where the value of assets were notified to HMRC previously through either 41G paper or SA900 tax returns then you should just complete “Other Asset” field using the term – “Already notified”, leaving all other asset fields marked as “£1”.
Nigel Scase
Greene & Greene

1 Like
4

There is a formal work around for this, which is ticking the ‘other’ box, putting £1 in the value box and including a note stating ‘previously advised via 41G’. I hope this helps.

Lucy Orrow
Lambert Chapman LLP

1 Like
5

I don’t understand this option of “other”. How, if you’re giving formal notice to HMRC, in reply to the question “give the details of the trust assets when the trust commenced” can you give the answer “already notified”? Unless you have indeed already notified them. This would not normally be the case. As to a value of £1, this would never be the case.

Don’t HMRC have webdesigners? Can’t they re-phrase the question?

Julian Cohen, Solicitor

6

You would normally have notified them via Form 41G, plus entries on the annual tax return.

Cindy Chaplin
Larking Gowen

7

I agree Julian, but I think this was done as a quick work around to get the historic trusts registered. Obviously going forwards all new trusts, we should know this information and complete it accurately. As per John’s example, it must be almost impossible to value the assets on formation of the trust which is so old and indeed those assets may well have changed over the subsequent years, so it may even be irrelevant. I think we just have to put up with this for the short period where we are registering old trusts. If ‘everyone’ feels that strongly about it, I do have a contact email for the web team and can make a suggestion.

Lucy Orrow
Lambert Chapman LLP

8

I would write to the HMRC explaining them the position. They have been very understanding and kind to me recently!
Ruksana Kaskar
Hamilton Davies LLP