How to Register a Trust with HMRC

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 penalty.

Which trusts must be registered

You must register your trust if it becomes liable for any of these taxes:

• Capital Gains Tax
• Income Tax
• Inheritance Tax
• Stamp Duty Land Tax
• Stamp Duty Reserve Tax
• Land and Buildings Transaction Tax (in Scotland)
• Land Transaction Tax (in Wales)

Even if your trust has no tax liability, you must still register if it's a UK express trust (a trust deliberately created, usually in writing). Non-UK express trusts must also register if they acquire UK land or property, or if at least one trustee lives in the UK and the trust enters into a business relationship here.

Trusts that don't need to be registered

Schedule 3A trusts (also called 'excluded express trusts') don't need to be registered unless they have a UK tax liability. Your trust is a Schedule 3A trust if it's:

• A statutory trust created by a court order or by law (for example, during a divorce)
• Holding money or assets of a UK registered pension scheme
• Holding life insurance policies that only pay out on death, illness, or disability
• For a registered UK charity
• Set up to open a bank account for a child
• A will trust that takes assets from the estate and closes within 2 years of death
• A pilot trust with less than £100 set up before 6 October 2020
• A co-ownership trust holding property or assets jointly owned by 2 or more people as tenants in common
• Set up to enable commercial transactions or hold client money for professional services

Other types of excluded trusts include those created for financial markets, to register assets, or set up by government or public authorities. If you're unsure whether your trust needs to be registered, consult a solicitor, accountant, or financial adviser.

Registration deadlines

The deadline depends on when the trust was created and whether it has a tax liability.

For non-taxable trusts created on or before 6 October 2020: the deadline was 1 September 2022.

For non-taxable trusts created after 6 October 2020: register within 90 days of creation or by 1 September 2022, whichever is later.

For taxable trusts created on or after 6 April 2021: register within 90 days of the trust becoming liable for tax, or by 1 September 2022 (whichever is later).

For taxable trusts created before 6 April 2021: the deadline varies:

• If the trust is liable for Income Tax or Capital Gains Tax for the first time: register by 5 October in the tax year after the one when the trust starts receiving income or has capital gains and becomes liable for tax.
• If the trust has been liable for Income Tax or Capital Gains Tax before: register by 31 January in the tax year after the one when the trust receives income or has capital gains and is liable for tax.
• If the trust is liable for other taxes like Inheritance Tax: register by 31 January in the tax year after the one when the trust has any tax liability.

Penalties for not registering

If you fail to register the trust or don't keep the register up to date, you may have to pay a £5,000 penalty.

What information you'll need

You'll need basic information about the trust:

• The name of the trust
• The date it was created
• Whether it's an express trust
• Details about any UK land or property the trust has purchased
• For non-UK trusts, details about any business relationships in the UK

This information should be in the trust deed and any correspondence with HMRC.

Lead trustee details: All trustees are equally responsible, but you must nominate one 'lead' trustee as the main contact for HMRC. The lead trustee receives the trust's Unique Taxpayer Reference (for taxable trusts) or unique reference number (for non-taxable trusts).

For an individual lead trustee, you'll need:

• Full name
• Date of birth
• National Insurance number and address (for UK citizens)
• Passport details and address (for non-UK citizens)
• Telephone number
• Country of residence
• Country of nationality

For an organisation as lead trustee, you'll need:

• Organisation name
• Organisation Unique Taxpayer Reference
• Address
• Telephone number
• Email address
• Country of residence

Settlor details: A settlor is someone who has put assets into the trust. You'll need:

• Full name
• Date of birth
• Date of death (if applicable)
• Last known country of residence
• Last country of nationality

If the trust was set up by a living settlor, you'll need to confirm whether they have mental capacity when registering.

Sources

• Register a trust as a trustee
• When HMRC will issue a penalty charge for not registering or maintaining a trust

This article provides general guidance based on current HMRC rules. For advice specific to your situation, speak to your accountant.