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Update on the new HMRC Trust Registration Service – what you need to know

November 2017

As from 1 June 2017, there is a legal requirement for all trusts that incur relevant tax liabilities to be registered with the HMRC Trust Register Service.  This includes those trusts that have previously been registered in paper form.

Registration of all existing trusts must take place no later than 5 January 2018 (this deadline has recently been extended from 5 December 2017).  Failure to register by this date will result in the imposition of a penalty for late registration. 

Relevant tax liabilities arise if, in a given tax year and after claiming any tax relief, a liability arises to pay Income Tax, Capital Gains Tax, Inheritance Tax, Stamp Duty Land Tax, Stamp Duty Reserve Tax and Land & Building Transaction Tax (Scotland only).

There is no need to register a trust in a given tax year if the trustees do not need to file a Tax Return and have not incurred a liability to pay any of the aforementioned taxes. If you incur a tax liability at a later date then you must at that stage register the trust.

If the trust has purchased property or shares in the last tax year with the result that tax has been paid thereon, the trust will need to be registered.

Further information about the need to register trusts can be found at www.gov.uk/government/publications/trusts-and-estates-trusts-details-41G-trust.

Our estates team have already written to clients where we administer trusts, if you have received a letter with a request for information please ensure you respond as soon as possible to allow us to register the trust by the deadline date. 

If you have a trust and would like advice on whether it is caught by the new online reporting regulations, please contact us on 01473 232121 and ask to speak to a member of our Estates team.

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