Being a trustee comes with additional obligations now, even if the trust is not liable to pay tax, so trustees need to ensure that they are up to date with what is expected of them.

My last blog on this subject was August 2020 and since then HMRC have been developing the trust register to enable it to deal with the registration of non-tax paying trusts.

HMRC have confirmed that non-tax paying trusts are now able to register on the system, where they are required to do so. Many non-tax paying trusts are not required to register as they will be covered by the list of excluded trusts which can be found in HMRC’s new Trust Registration Service Manual.

It is pleasing to read that HMRC have listened to the professional bodies and have given longer deadlines by which a trust has to register or make changes to the details held. The deadlines are as follows:-

  • If a non-tax paying trust comes into existence on or after 6 October 2020 its trustees have until 1 September 2022 to register
  • Where a non-taxable trust comes into existence after 1 September 2022, the trustees must register the trust within 90 days of the date it comes into existence
  • Any changes to any trust details, both taxpaying and non-tax paying trusts, (for example any changes to trustees or beneficiaries) and/or circumstances must be updated on the trust register within 90 days of the change.

Of course, for trusts which become liable to pay income tax or capital gains tax the requirement to register by 5 October following the end of the tax year in which the trust first becomes liable still applies. There are also registration deadlines where a trust becomes liable to pay inheritance tax, stamp duty land tax or stamp duty reserve tax, although the latter of these are less common.

If you are the trustee of a trust, or know someone that is, and are unsure what you need to do please do not hesitate to contact me.