Understanding the Trust Registration Service
The Trust Registration Service (TRS) is HMRC’s register of certain trusts and their beneficial owners. Trustees are responsible for deciding whether a trust must be registered and for ensuring the information held on the register remains accurate and up-to-date.
When the TRS was first introduced in 2017, trustees were only required to register certain taxable trusts. Following the expansion of the TRS rules in October 2020, many non-taxable trusts have now also fallen within the registration regime. However, not every trust is required to register, and the rules can be particularly complex for older trusts and trusts arising under Wills.
Does every trust need to be registered?
While most newly created trusts now require registration with the TRS, there are a few exclusions. Whether registration is required is dependent on the type of trust, when it was created, the assets it holds and whether it has any UK tax liabilities. Trustees should therefore seek advice before assuming a trust either must, or does not need to, register.
Historical trusts
The position can be less clear for trusts created before 6 October 2020. In some circumstances, changes to the trust arrangement (for example, transferring additional assets into the trust, making gifts into the trust under a Will, or restructuring trust property) may create a TRS registration requirement where it did not previously exist. The rules are highly fact-specific; trustees should therefore review any significant changes carefully.
Trusts created through a Will
It may be difficult for individuals to determine whether a trust arising under a Will needs to be registered. This is often dependent on the wording of the Will itself, and the nature of the trust created.
Generally, trusts created by a Will are excluded from registration for the first two years following the date of death, provided they only hold assets from the deceased’s estate. However, registration may be required if the trust continues beyond this two-year period.
We can assist in reviewing the terms of a Will and advising whether registration is required.
Taxable and non-taxable trusts
Following registration of the trust with the TRS, HMRC will issue either a:
Unique Reference Number (URN) for a non-taxable trust; or
Unique Taxpayer Reference (UTR) for a taxable trust.
Where a trust subsequently becomes taxable, the trustees must update the TRS and use the UTR for all future dealings with HMRC.
Please see “What makes a trust taxable? A refresher for the new tax year” for more information on determining whether a trust is taxable.
Ongoing trustee obligations
Once a trust has been registered, trustees are responsible for regularly reviewing the TRS record to ensure that the register remains accurate. Trustees are generally required to update the register within 90 days of any changes to the trust or beneficial ownership.
There may also be additional annual reporting obligations for taxable trusts.
How we can help
The TRS rules are technical and can be difficult to apply in practice, particularly for family trusts and trusts arising under Wills.
We can assist with:
Reviewing whether a trust is registrable.
Completing initial TRS registrations.
Providing ongoing trust administration support, including monitoring future reporting requirements.
If you would like assistance with a trust registration or would like to discuss our trust administration services, please contact our trust team via info@wtsolicitors.com.