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THE TRUST REGISTRATION SERVICE
(e.g. stocks and shares)
The introduction of the EU’s 5th Money Laundering Directive in July 2018 brought new requirements for trustees to register UK trusts with HMRC. This expanded the scope of the existing register, which was introduced by its predecessor and made it a legal requirement for all taxable trusts to be registered. Despite having left the EU, the UK agreed to maintain the Trust Registration Service (TRS) as part of the Brexit Withdrawal Agreement. This new legislation requires all UK non-taxable express trusts and non-UK express trusts with links to the UK, such as those having a UK-based trustee or that owns land in the UK, to be registered.
Some trusts are excluded from the requirements, notably registered pension schemes, charitable trusts, disabled person trusts, will trusts that are wound up within two years of death, and life or critical illness assurance policies placed in trust. Bare trusts for minors holding cash in banks and building societies are also excluded as are Junior ISAs and Child Trust Funds. The question of whether premium bonds held for minors require registration remains outstanding. The full list of trusts not required to register can be found on GOV.UK. Lead trustees are responsible for deciding whether a trust is excluded or not.
Express trusts are generally defined as trusts that a settlor creates intentionally, rather than through other means, such as through court order or statute. The legislation therefore captures:
In order to register a trust with the TRS, trustees must first obtain a Government Gateway ID for the trust, noting that this is an organisation account for each trust and not a personal one.
• Discretionary trusts
Thereafter, the process of registering a non-taxable trust is relatively straight forward.
• Interest in possession trusts • Many bare trusts • Employee ownership trusts • Investments held on trust for the benefit of a minor child
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The lead trustee needs to confirm the trust details: the trust name, settlement, classes of beneficiary, whether its land or property was acquired after 6th October 2020, and whether
