The Trusts Registration Service is a new initiative from HMRC, which requires attention from all trustees. The changes mean that all UK trusts which declare tax to HMRC are required to register using this service. This article is intended as a prompt for trustees to establish whether their trust is required to register using this service.
- What is the Trusts Registration Service?
- When should trustees use the Trusts Registration Service?
- What are the deadlines to register?
- How to register your trust
- Further information for trustees
What is the Trusts Registration Service?
The Trusts Registration Service replaces the previous system for trusts, which required them to register using paper-based forms. Now, the Trusts Registration Service operates online.
When should trustees use the Trusts Registration Service?
Trustees must use the Trusts Registration Service if the trust has incurred a tax liability to HMRC, or if the trust is registered for self-assessment. The taxes covered are:
- Income tax
- Capital gains tax
- Inheritance tax
- Stamp duty
Trusts do not need to register using the Trusts Registration Service if they do not need to declare tax. This may happen if:
- No tax is payable by the trust
- Tax relief means no tax is payable
- Tax is paid directly by the settlor or the beneficiaries of the trust
What are the deadlines to register?
Trustees should complete the registration process if:
- The trust is already registered for self-assessment, and the trust incurs UK tax liability.
- Your trust should register by the 31st of January after the end of the tax year in which the liability falls.
- The trust is not already registered for self-assessment, and the trust incurs UK tax liability for the first time.
- Where other taxes are payable, your trust should register by the 31st of January after the end of the tax year in which the liability falls.
- Where income tax or capital gains tax is payable, the deadline is 5th October after the end of the tax year in which the liability falls
How to register your trust
Further information for trustees
If you have any further questions on the Trusts Registration Service, please see this helpful Q&A document from HMRC (via STEP).
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