Standalone Trust Registration

In the UK, trust registration is a legal requirement under the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017. The regulations require all express trusts to be registered with HM Revenue and Customs (HMRC) if they generate a UK tax consequence.

An express trust is a trust created intentionally by the settlor, usually by way of a trust deed or will. It is different from an implied trust, which arises by operation of law, and a resulting trust, which arises where the legal owner of property holds it on trust for someone else.

Under the regulations, a trust must be registered with HMRC by the 5th of October following the tax year in which it was created, or in which it first generated a UK tax consequence. If the trust is already registered, the trustees must update the information within 30 days of any changes to the trust or its assets.

The registration process involves providing certain information to HMRC, including the name of the trust, the date it was established, details of the settlor and trustees, and information on the trust assets and any beneficiaries. There is a separate registration process for trusts that are subject to inheritance tax.

It is important for trustees to ensure that the trust is registered and that the information is kept up to date, as failure to do so can result in penalties and fines. In addition, registration provides greater transparency and accountability for the management of trusts, which can help prevent tax evasion and money laundering.