Trusts and Inheritance Tax

Trusts face three potential Inheritance Tax charges: when assets go in, when they come out, and at ten-year intervals whilst they remain in trust. Understanding these charges is important if you're considering setting up a trust or are already a trustee, as the rates and calcu...

5 min read

Managing a trust involves more than just setting it up — trustees have ongoing legal responsibilities to keep trust information accurate and up to date with HMRC. The Trust Registration Service is the online tool you'll use to update trustee, beneficiary and settlor details, declare information is...

8 min read

Most trusts need to be registered with HMRC through the Trust Registration Service, either because they pay tax or to meet anti-money laundering rules. The registration deadline depends on when the trust was created and whether it has a tax liability. Missing the deadline can result in a £5,000...

4 min read

If you're investigating money laundering or terrorist financing, or need to check whether a trust controls an offshore company, you can submit a formal data request to HMRC for information held on the Trust Registration Service. HMRC will only provide trust details in these sp...

5 min read

If you're a trustee of a trust that must be registered with HMRC, you're legally required to register it and keep the information up to date. Failing to do so can result in significant financial penalties. This article explains when HMRC can charge penalties, how much you'll pay, and what to do if...

5 min read

When Inheritance Tax is charged on certain trust events, the amount may be reduced if assets haven't been held in the trust for a full 10-year period. The tax calculation depends on counting the number of complete quarters (3-month periods) between specific dates, which varies...

4 min read