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Trusts; Reporting Requirement Update

By July 7, 2022No Comments

There are new reporting requirements for Trusts to register with HMRC’s Trust Registration Service (TRS). All trusts, taxable or non-taxable (with the exemption of a few types of Trust) must register on the TRS by 1st September 2022.

What Has Changed?

With the introduction of the 5th Anti-Money Laundering Directive (5AMLD) in 2020, all Trusts (apart from a few exempt types) must register on HMRC’s Trust Registration Service, also known as the ‘TRS’. Previously only taxable Trusts had to register, and so this new requirement will affect many Trustees over the UK. 

All new Trusts automatically must register on the TRS, but also any current Trusts who are not registered now must register before the deadline on the 1st September 2022. Penalties will apply to those who miss the deadline, the penalties have not yet been announced, but it is thought there will be a soft-touch approach to begin with including ‘nudge letters’ from HMRC.


Which Trusts Are Exempt From Registering?

There are a few categories of Trusts that will not be required to register on the TRS, details about these can be found here. Most charitable Trusts, or Trusts where a minor is the beneficiary are excluded from the requirements. Please don’t assume you’re exempt based on your Trust’s non-taxble status.

Trusts are exempt if:

  • the trust is used to hold money or assets of a UK registered pension scheme — like an occupational pension scheme
  • the trust is used to hold life or retirement policies providing that the policy only pays out on death, terminal or critical illness or permanent disablement, or to meet the healthcare costs of the person assured
  • the trust is holding insurance policy benefits received after the death of the person assured — as long as the benefits are paid out from the trust within 2 years of the death
  • it’s a charitable trust that is registered as a charity in the UK or which is not required to register as a charity
  • it’s a ‘pilot’ trust set up before 6 October 2020 and holds no more than £100 — pilot trusts set up on or after 6 October 2020 will need to register
  • it’s a co-ownership trust set up to hold shares of property or other assets which are jointly owned by 2 or more people for themselves as ‘tenants in common’
  • it’s a will trust created by a person’s will and comes into effect on their death providing they only hold the estate assets for up to 2 years after the person’s death
  • it’s a trust for bereaved children under 18, or adults aged 18 to 25, set up under the will (or intestacy) of a deceased parent or the Criminal Injuries Compensation Scheme
  • it’s a ‘financial’ or ‘commercial’ trust created in the course of professional services or business transactions for holding client money or other assets


How Do Trustees Register On The TRS?

You can register online, you’ll need your Government Gateway ID to do this (or you’ll need to apply for a Government Gateway ID if you don’t). Full details and the link to begin your online registration can be found here: 


What Information Will Trustees Have To Provide?

You’ll need to gather quite a bit of information before registering, so we suggest you have this information ready before you bigin. 

You’ll need to provide:

  • the name of the trust
  • the date the trust was created
  • to say if the trust is an express trust or not
  • details about whether a non-UK trust has a business relationship in the UK
  • details about any UK land or property the trust has purchased
  • details of lead trustees, deceased settlors, and any other individuals or organisations involved in your Trust
  • details of the Beneficiaries
  • and taxable trusts will also need to provide details of individuals and organisations involved, as well as shares, partnerships, property and land, money held in trust, and any other assets owned by the trust


Are There Any Other Ongoing Obligations?

Yes, if any of the details entered into the TRS changes you will be legally required to update the TRS within 90 days. This point could well be easy to overlook or forget about, but it is important. 

If your trust is a taxable trust you’ll also need to declare that the registration details are up to date, and you may also need to complete a Self Assessment Tax Return for the trust if Income Tax or Capital Gains Tax are applicable. Please note: HMRC no longer notify a professional advisor, like your accountant, that a notice to file a tax return has been issued – the trustees must ensure they act on any request to file a return, even if there is no tax owing. If you receive a letter and use an advisor please let them know asap.

If you close the Trust, this will also need to be updated online. You can find out more about the ongoing reporting requirements here.


If you require assistance with registering your trust on HMRC’s TRS please reach out to your accountant.

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