There are many types of Trust and the government is concerned that Trusts are being used to launder money. Clients with Protective Property Trust Wills or Family Trusts need have no fear about their being involved in money laundering. However, following the UK government's Fifth Money Laundering Directive, all Taunton Wills and West Country Wills clients with Trusts are advised to comply with the Trust Registration Service before the 1st September 2022 deadline.
The following comes from the gov.uk website. If you are a Trustee or have created a Trust which has Trustees then you should read on…
You must register your trust with HMRC:
You must register if the trust becomes, or is liable for any of the following taxes:
The following types of trusts must register even if they have no tax liability:
If the trust is not resident in the UK (‘non resident trusts’), you must register the trust if it becomes liable for tax on income coming from the UK or on UK assets.
If the trust has a tax liability but this is covered by a relief, you’ll need to register the trust to claim the relief through Self Assessment.
Trusts that do not need to be registered unless they are liable to pay UK tax:
You do not need to register your trust if any of the following apply, unless it has a liability to UK taxation:
Other less common types of express trusts which are set up for particular purposes are also excluded from registration unless they have to be registered because they are liable to pay tax.
Trusts which are not set up deliberately by a settlor but are imposed by courts or created by legislation, are not ‘express trusts’ and do not have to register unless they need to obtain a UTR to complete a tax return. Examples of these trusts include ones set up under:
Some financial products and arrangements with ‘Trust’ in their description, like the Child Trust Fund or Venture Capital Trusts, are not really trusts, so do not need to be registered.
You should check with a solicitor, accountant, financial adviser or other professional adviser if you’re not sure if a product or arrangement: