The Trust Registration Service: What Trustees Must Do

The Trust Registration Service is HMRC's online register of trusts. Originally introduced for trusts with a tax liability, its scope was widened so that most UK express trusts now have to register, whether or not they pay any tax. For trustees, registration is a legal duty, and keeping the record up to date is an ongoing responsibility that is easy to overlook.

This article explains what trustees need to do. It is part of our guide to Trusts in Estate Planning. If you are a trustee and want help meeting these obligations, our trusts service at /services/trusts can put a plan in place for you.

What the register is for

The Trust Registration Service exists to improve transparency around who controls and benefits from trusts, as part of the UK's anti-money-laundering framework. It records details of the trust, its trustees, its settlor, and its beneficiaries on a register held by HMRC. Some of that information can be shared in limited circumstances with people who can show a legitimate interest.

Which trusts must register

Two broad categories of trust must register. The first is any trust with a UK tax liability, including income tax, capital gains tax, inheritance tax, or stamp duty land tax. The second, and the reason the register now covers so many trusts, is most UK express trusts even where there is no tax to pay. An express trust is simply one deliberately created by a settlor, as opposed to one that arises by operation of law.

There are exclusions. Some trusts are specifically exempt, and the detail matters, so trustees who are unsure should take advice rather than assume. The list below gives the common position.

• Most discretionary trusts and lifetime interest in possession trusts must register.
• Will trusts generally must register if they continue beyond a short period after death.
• Some trusts are excluded, such as certain trusts holding only life policies that pay out on death or critical illness, and some pension scheme trusts.
• Bare trusts may or may not need to register depending on the circumstances, so they should be checked rather than assumed exempt.
• A trust with a tax liability must register regardless of whether any exclusion would otherwise apply.

What information is required

Registration asks for details of the people connected to the trust and of the trust itself. Trustees need to gather this before starting, because the register asks for specific identifying information about each individual.

The deadlines

The deadlines depend on when the trust was created and whether it is taxable. A newly created trust generally has to register within 90 days of being set up or of becoming registrable. A taxable trust must be registered before certain tax deadlines, and in any event by 31 January following the tax year in which a tax liability first arises. Trustees who miss the deadline can face penalties, although HMRC has generally taken a measured approach to first failures.

Keeping the record up to date

Registration is not a one-off task. Trustees have an ongoing duty to keep the details accurate. Any change to the trustees, beneficiaries, settlor details, or the trust itself must be updated on the register, generally within 90 days of the change. Taxable trusts must also confirm each year, when they file, that the register is up to date.

This ongoing duty is the part most often missed. A change of trustee, a beneficiary reaching adulthood, or a change of address can all trigger an update requirement. Many trustees ask a specialist accountant to manage the register on their behalf so that updates are not forgotten.

Common questions

Does a trust that pays no tax still have to register?

In most cases, yes. The register now covers most UK express trusts regardless of whether they have a tax liability. Only specific excluded trusts are outside the requirement, and exclusions should be confirmed rather than assumed.

Who is responsible for registering?

The trustees are responsible. Where there is more than one trustee, one is usually nominated as the lead trustee to deal with HMRC, but the duty rests with the trustees collectively. Trustees often delegate the practical work to an accountant while remaining legally responsible.

What happens if we register late?

Late registration can attract penalties, though HMRC has generally been measured with genuine first-time failures. The safer course is to register on time and to keep the record current, which is exactly the kind of ongoing duty a specialist can manage for you.