Time to Register Your Trust?
In October 2020, HM Revenue & Customs extended their Trust Registration Service to include non-taxable trusts. This means that most UK trusts will now need be entered into a register and details of the trustees, beneficiaries and in some circumstances, trust assets, will need to be provided to HMRC.
Existing trusts need to be registered by 1 September 2022 and new trusts will have 90 days from creation to be registered (after 1 September 2022). Failure to comply with these rules can lead to financial penalties and possibly criminal sanctions.
Both lifetime trusts and will trusts are required to be registered. Many wills include trusts, even when it is not expressly stated, for example, a gift to a child under the age of 18. It is important to note that the trust will not need to be registered until the will takes effect on death.
Carly Madsen, a solicitor in our Private Client department says, “I would strongly urge anyone who has a lifetime trust, a will or who is a beneficiary under a will to take advice as to whether there is a trust in place that may need to be registered. The deadline is fast approaching, and it is best to take steps as early as possible to avoid penalties from HMRC for non-compliance.”
If you think you may have a trust, or if you are a beneficiary of a trust which may need to be registered, then please get in touch with the team at Frodshams Solicitors as soon as possible on 01744 626600 or via email email@example.com or visit www.frodshams.co.uk