Nearly 19,000 non-taxable trusts have registered with HMRC, just a fraction of those that need to ahead of the 1st September 2022 deadline.
HMRC estimates that between 500,000 and 1 million non-taxable trusts are required to register by 1st September 2022. This does not include taxable trusts as they have been required to register since 2017.
As part of European wide anti-money laundering regulations, HMRC now require most trusts to be registered on their Trust Registration Service (TRS), which is part of European wide Anti Money Laundering regulations. All relevant Trusts must be registered with HMRC by 1st September 2022, or within 90 days of being set up, whichever is the later. Failure to register a Trust may result in a fine from HMRC.
The FOI also revealed that of those lead trustees already registered with the TRS, the average age of lead trustees is 66 years old.
Just a small fraction of trusts have been registered by trustees with HMRC to date. The lack of registrations suggests that the requirements have largely gone under the radar of most trustees. More could be done by the Government to communicate these changes better and greater consideration is required to understand why the take up has been slow.
It is the responsibility of the Trustees to ensure the TRS is completed and kept up to date. If you are unsure about whether these changes impact you it is advisable to speak with your adviser or you run the risk of receiving a fine.
Access the HMRC online TRS at: https://www.gov.uk/guidance/register-a-trust- as-a-trustee. Registration can only happen via this online service. Trustees will also need to set up an Organisation Government Gateway user ID before registering on the TRS.