TRUSTEES WARNED THEY FACE PENALTIES IF THEY MISS NEW REGISTRATION DEADLINE
Non tax-paying trusts which have up until now been exempt from registering with the Trust Registration Service are being warned that they now have to do so – and face penalties if they miss the deadline for doing so.
Existing trusts have until 1st September 2022 to register, but newly-created trusts have just 90 days to register their details with the service.
Lovewell Blake Financial Planning is warning trustees that the responsibility for registering their trusts rests with them – and failure to do so could result in a penalty fine. In addition, once the deadline has passed financial service providers such as Financial Advisers will no longer be able to service existing investments or improve the trust with new investment ideas, if they are not registered.
“The Trust Registration Service was set up in 2018 following the implementation of the EU Fifth Money Laundering Directive,” said Stephen Metcalf of Lovewell Blake Financial Planning. “When it was established, non-tax paying trusts were exempt from registering, but this exemption is now being removed.
“The aim is to bring all trusts into the self-assessment system, and even those which have no tax to pay will now need to complete an annual tax return.
“The responsibility for the registration of a trust lies solely with the trustees themselves, and if they do not comply with the regulations, they may be subject to a penalty fine.”
Trusts will have to provide a range of information to register, including details of the settlors, trustees and beneficiaries, as well as detailed information about the trust’s assets.
There are still a few exempt categories of trusts which will not need to register, including those for bereaved children under 18 and 18-25 trusts where a parent has died, will trusts for a period of two years from date of death, and charitable trusts. A full list of exemptions is available on the Trust Registration Service website at www.gov.uk/guidance/register-a-trust-as-a-trustee.