Law firms - are your clients aware of HMRC's New Trust Registration Service 31 January deadline?
Article posted: 19th December 2017
By 31 January 2018, all trusts with UK tax liabilities are required to be registered online with HMRC’s Trust Registration Service (TRS). This is compulsory and there are potential penalties for non-compliance. The requirement also affects Funded Unapproved Retirement Benefit Schemes (FURBS).
The new service has been designed to improve the processes for the administration of trusts and allow HMRC to collect, hold and retrieve information in a central electronic register. It replaces the 41G (Trust) paper form, which was withdrawn at the end of April 2017, and is now the only way that trusts and complex estates can obtain their Self-Assessment Unique Taxpayer Reference (UTR).
In this first year of the TRS, the information required includes:
- Details of the trust’s assets, including addresses of UK properties, and a market valuation of assets at the date they were settled;
- The identity of the settlor, trustees, any person exercising effective control over the trust and the beneficiaries or class of beneficiaries, including name, date of birth, National Insurance number (NINO) or UTR (if UK resident), or address and passport or ID number (if not UK resident and without a NINO).
- The telephone number and email address of the lead trustee.
Trusts that need to be registered by 31 January 2018 will have been liable to one of the following relevant taxes in previous tax years: income tax; capital gains tax; inheritance tax; stamp duty land tax; stamp duty reserve tax; and/or land and buildings transaction tax (Scotland).
We understand that the registration process is taking trustees and professional advisers more than three hours to complete. Agents have recently been given access to the TRS portal and can now conduct this registration on behalf of clients.
How can McBrides help?
Aimed at taking an additional compliance pressure away from you and your clients, McBrides would be pleased to register your client's trust with the TRS for a fee starting from £500 plus VAT, and depending on the complexity of the trust.
If you would like McBrides to register your client’s trust with the TRS, or if you have any questions about this new requirement, please speak to your usual McBrides contact or our tax partner Terry Baldwin on firstname.lastname@example.org or 020 8309 0011.
Requests will need to be submitted by 31 December 2017 to ensure registration can be completed before the deadline.
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