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Trusts are an important but often overlooked aspect of daily life.
Many people are familiar with trusts in wills but trusts can also be found in residential property transactions, commercial property transactions, estate and succession planning, caring for children and the disabled.
If you are contemplating buying a house with your partner or buying a house with your parents or children, then you need a trust. If you are thinking of passing wealth in your lifetime to another family member and wish to protect that wealth and ensure that it is used for the benefit of the person that you are giving it to, then you need a trust.
If you are in business with someone else trading as a partnership then all your business property will be held in a trust.
Contact our trusts solicitors in Essex
We have 130 years experience of advising our clients on the most appropriate form of trust and work closely with chartered tax advisors and trust accountants to provide an appropriate bespoke solution.
For further information please contact us.
New Trust Registration Requirements
The government introduced new rules on 6 October 2020 which require most UK express trusts to be registered via their online Trust Registration Service (‘TRS’), regardless of their taxable status.
The TRS was set up by HMRC so that the UK can comply with EU Money Laundering regulations, which requires trust records to be maintained and beneficial ownership recorded. The TRS is designed to support the digitisation of HMRC, and increased tax transparency to reduce tax evasion.
The rules apply to most UK express trusts, however there are some limited exclusions.
The deadlines for registration of the trusts are:
- Non taxable trusts in existence on 6 October 2020: 1 September 2022
- Non taxable trusts created after 6 October 2020: 1 September 2022, or within 90 days of creation
- If there are any changes to the details of the trust, then the TRS must be updated within 90 days of the change.
The Trustees have a legal obligation to register the trust and failure to do so will be a breach of your fiduciary duties.
HMRC can issue penalties for non-compliance. The trustees may have to pay a penalty personally if they do not register the trust before the registration deadline.
HMRC have issued guidance to assist in registering the trust and this can be found on their website www.gov.uk/guidance/register-a-trust-as-a-trustee
Registration of trusts can be a complex area and it is essential that HMRC are provided with the correct information. We can act for you and register the trust on your behalf. For assistance, please contact Leigh Wetheridge on 01621 852323, or by email leigh.wetheridge@brightslaw.com
