Be prepared for new Trust Registration Service deadlines
With the impending deadlines for the new Trust Registration Service (TRS) being confirmed as being on January 5, 2018 for any Trust that is not registered under Self-Assessment – and 31 January 2018 for Trusts that are already registered for income tax or capital gains tax – it is essential that trustees are aware of the changes and what action they must take.
The TRS, launched by HMRC, requires that Trusts which have a liability to income tax, capital gains tax or stamp duty – which will encompass the majority of Trusts – will need to register by the above deadlines.
TRS now provides a single online service for Trusts to comply with their registration obligations, and will be the only way that Trusts and complex estates can obtain their Self Assessment Unique Taxpayer Reference.
Trustees who are involved in Trusts which are affected by the new rules must:
- Hold certain information about the Trust, such as its history, assets and the names of any paid advisors, actual and potential beneficiaries
- Register the Trust and required information with HMRC
- Update the register each year to ensure the information is correct
- Provide details of assets, including their values at the start of the Trust
Trustees who do not comply with the requirements risk financial penalties or even conviction, so this must be looked at promptly.
It is essential that all Trustees are aware of the changes and how these affect them, and seek professional advice if in any doubt.