What Are The Penalties For Failure To Register A Trust?
Probably none for an innocent mistake ...
Posted by Helen Beaumont on 10/08/2022 @ 8:00AM
With legislation introduced in 2022, all express trusts now have to be registered on the Trust Registration Service by the 1st of September 2022, or 90-days from the date the trust was created ...
Trusts must be registered by the 1st of September 2022!
This does not include a trust that is considered 'excluded' and details of the trusts that are required to register are set out in HMRC's own Trust Registration Service manual.
"Very little has been said about the penalties for non-compliance!"
HMRC has said that there will be no penalties for a first offence such as late registration unless the failure is shown to be deliberate, in which case, you could be looking at a £5,000 penalty per offence, although this will vary on a case by case basis.
Trustees who have a TRS registered trust also have a duty to keep the details accurate and up to date. Any changes must be notified within 90-days and the details must include the beneficial owners and whether any UK tax liability has arisen from purchases or sales of land or property.
It should be noted that the TRS is the only route for trustees to get a Unique Taxpayer Reference so self-assessment SA900 tax returns can be submitted to HMRC.
HMRC received information from multiple sources. All trustees should be aware that HMRC has a complex web of data sources and get information from many different sources within the financial sector.
"Its systems may automatically flag up a trust for non-compliance with the regulations!"
And finally, from the 1st of September 2022, any obliged entity, such as a bank or professional advisor is not able to establish new business relationships with trustees, unless their trust has been registered with the Trust Registration Service.
Existing business relationships will probably come under scrutiny too.
Until next time ...
HELEN BEAUMONT
Would you like to know more?
If anything I've written in this blog post resonates with you and you'd like to discover more about registering your trust with the Trust Registration Service, it may be a great idea to give me a call on 01908 774323 and let's see how I can help you.
Helen brings the personal tax planning experience of the top 20 tax companies to Essendon. Formerly of MacIntyre Hudson (with 45 offices nationwide), Helen worked at Chancery for more than 10 years before joining Essendon as the personal tax specialist.
Tax Planning can make a considerable difference to your tax liability. Helen has specialist knowledge and experience in tax planning and uses every opportunity to minimise your tax bill is utilised. By analysing your investments, income, profit and expenditures, Helen will provide strategic tax planning expertise that could offer significant savings, whilst delivering clear, honest advice and guidance.
When Helen is not at Essendon she spends time with her young son and likes going on long walks with the family dog.
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