New trusts, created on or after 1st April 2020 need to be registered under the TRS within 30-days of creation ...
The Government also proposes that unregistered trusts in existence on 10th March 2020 would have until 31st March 2021 to register under TRS. Currently, only trusts incurring a UK tax liability need register, but this means there are a large number of trusts soon to fall under the scope of TRS and its requirements.
The new proposals mean the following trusts will need to register, regardless of any UK tax liability:
- All UK tax-resident express trusts, as opposed to just those with UK tax liabilities
- Non-EU tax-resident express trusts that acquire UK land or property
- Non-EU tax-resident express trusts entering into new business relationships with an obliged entity (for UK money laundering compliance)
These new rules mean that a vast number of trusts, that previously didn't need to register, now do. It is imperative that trustees and their agents comply and register. New penalties for late registration will be introduced as self-assessment penalties will no longer be suitable.
So this is a huge undertaking and anyone involved with express trust creation, management or administration should consider this new legislation as soon as they can.
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