About the HMRC Trust Registration Service
Adviser area – If you’re a customer please visit the customer section
Informing your clients about the Trust Registration Service from HMRC
The information below will enable you to guide your clients through the requirements and obligations of HMRC trust registration based on their circumstances.
What does the Trust Registration Service cover?
The Trust Registration Service was set up in 2017. It initially only required trustees to register if the trust was liable to pay UK tax, including Income Tax, Capital Gains Tax and Inheritance Tax.
In 2020, the scope of trust registration changed because of the Fifth Money Laundering Directive. New rules, which are now UK law have extended the scope of the Trust Registration Service to express trusts, which must now register by the prescribed deadlines. See below for an explanation of what is an express trust.
Some trusts don’t have to register, for example, UK-registered pension schemes and pure protection policies. A complete list of trusts which don’t need to register is in the HMRC Trust Registration Service Manual at TRSM23000
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What is an express trust?
An express trust is a trust created deliberately by the settlor, typically during the settlor’s lifetime.
Express trusts include Discounted Gift Trusts, Loan Trusts, Gift Trusts and trusts holding an investment bond (whether a discretionary or bare trust).
How does trust registration work?
The trustees will first need to register for an organisation Government Gateway user ID and password. Details on how to get a user ID, what information is required and where to register the trust are here on the gov website: Register a trust as a trustee.
On completion of the trust’s registration, the lead trustee can select “Get evidence of the trust’s registration”. The lead trustee can then print or download a digitally signed PDF letter from HMRC confirming that the trust has been registered and providing details about the trust, the trustees, the settlor and the beneficiaries.
The trustees must ensure their trust registration is up to date. Any changes such as appointing a new trustee, or an existing trustee retiring, must be notified via the Trust Registration Service within 90 days. Failure to do so may result in a penalty
How does the TRS impact on HSBC Life business processes?
Proof of registration must be sent in with the bond application form, deed, and additional information form. Without evidence, HSBC Life will be unable to accept and process the application.
Evidence of registration for existing trusts are also required and Trustees must ensure they have registered by the stated deadlines.
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What information will be required to register the trust?
The following information is required for the trust registration:
– The name of the trust and date created
– Information on the settlor, including name, date of birth and nationality
– Information on the trustees, including name, date of birth, nationality, national insurance number, and for the lead trustee their address, email address and telephone number
– Named beneficiary details for absolute or bare trusts
For discretionary trusts, a description of the class of beneficiaries, for example the settlor’s children and grandchildren
– Whether the settlor, individual trustees, or named beneficiaries have mental capacity at the time of registration
When must trust registration happen?
The prescribed deadline to complete registration are as follows:
◦ Trusts that were in existence on or after 6th October 2020 must now be registered
◦ New trusts must register within 90 days of their creation date
Further information on deadlines depending on the status of the trust is available in the HSBC Trust Registration Service download.
How can advisers add value?
As an adviser, you should hold most of the information the trustees will need for the Trust Registration Service. If any changes to the trust or trustee details have occurred, registration will provide an opportunity to update your client’s records. You should note that any updated information should be notified to HMRC within the 90 days of the details changing.
Trustees may also appoint an adviser as an agent. You will need to be registered with HMRC or a supervisory authority such as the FCA and can register the trust on their behalf.
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Which HSBC Trusts should be registered?
Learn more about the specific HSBC Life Trusts that fall within the scope of the Trust Registration Service.
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What types of trusts need to be registered?
Discover if the changes to HMRC trust registration impact your clients' trusts and require any action.
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How are trusts with an existing tax liability affected?
Get further information on what trustees need to do if their trust has to register with HMRC and has an existing tax liability.