Non-taxable trusts need to be registered with HMRC using the Trust Registration Service (TRS) by 1 September 2022 or you could be penalised.

Whilst trusts that hold assets and pays tax each year will already be registered, non-taxable trusts may now need to be registered too. These trusts include:

  • Gift and loan trusts – usually set up through an insurance company
  • Discounted gift trusts – again usually set up through an insurance company
  • Bare trusts holding stocks and shares for children or grandchildren
  • Will trusts still in existence two years or more from date of death
  • Pilot trusts created after 6 October 2020 for death benefits (or any pilot trust which holds funds exceeding £100)

As previously mentioned, not all trusts need to be registered, these include:

  • Pilot trusts set up before 6 October 2020
  • Charitable trusts
  • UK registered pension schemes
  • Employee share scheme trusts (e.g. share incentive plan)
  • Bank accounts held in the name of a parent for a child
  • Trusts holding life policies that only pay out on death and cannot be surrendered

We’ve put together a more detailed fact-sheet about the Trust Registration Service and questions you may have here.

We can help

Magma can assist trustees with the registration process and provide advice related to the Trust Registration Service. Please do not hesitate to contact a member of our team below to find out more.

The Team

Our experienced and approachable team are on-hand to assist you, please get in touch below: