1 September 2022 is the deadline for registering non-taxpaying trusts that existed on 6 October 2020 on HMRC’s Trust Registration Service (“TRS”). This applies even if the trust has since been closed.
Taxable trusts created on or after 6 April 2021 must register within 90 days of the trust becoming liable for tax, or by 1 September 2022 (whichever is later). There are different registration deadlines for taxable trusts that were created before 6 April 2021.
More information on trusts that must register on the TRS and those which are excluded from registering is available here:- Trusts and Estates: detailed information. More detailed technical information is available in the Trust Registration Service Manual.
The Institute discussed the extension of the TRS recently with the Law Society for Northern Ireland. Members are advised that the scenarios where registration under the TRS is required is widely drawn and can catch scenarios such as trusts which have closed since 6 October 2020 and certain estates in administration.
HMRC’s compliance approach in respect of the extension of the TRS is also currently unknown. The Institute has raised this with HMRC to ascertain both the penalty regime and if a soft landing will be available.
Readers are advised that the trust section of HMRC’s Agent Forum also answers particular questions and should be used to raise general questions on the TRS.