Registration for non-taxable trusts closed before September 2021

Following the expansion of the Trust Register to include non-taxable trusts from 6 October 2020, a number of members have raised queries about whether or not it is necessary to register non-taxable trusts which were brought in scope of the register from that point, but which closed before the TRS was opened up to allow non-taxable trusts to register on 1 September 2021. 

The ATT/CIOT and other bodies have asked HMRC if an exemption from registration could be made trusts which closed before facilities to register them were available but HMRC have previously indicated that these trusts do still need to be registered – and then closed. They have confirmed their position in a statement issued on 29 November:

“On 6 October 2020, amendments to the Money Laundering Regulations came into force to require trusts without tax liabilities to be registered on the Trust Registration Service (TRS). Any trust that was within the scope of registration on or after 6 October 2020 is required to register by 1 September 2022. The IT changes required to enable trustees to register such trusts in practice were completed on 1 September 2021. Trusts that were in existence on or after 6 October 2020, and have since ceased, are still liable for registration on TRS. Trustees of such trusts should register them on TRS and them immediately close the trust record. We appreciate that it may be challenging to raise sufficient awareness of this requirement with former trustees and agents of trusts that no longer exist, however we have an obligation to produce and maintain a comprehensive register of trusts in the UK from 6 October 2020 onwards. HMRC will take a proportionate approach should any such trust come to our attention after the deadline for registration of 1 September 2022.”

We have updated our long-standing article 'How to update the Trust Register - A User's Guide' accordingly. 

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