The HMRC’s new Trust Registration Service was due to start during June following the withdrawal of the paper form 41G (Trust). However, the launch, which was intended to coincide with the beneficial owner registration requirements of the EU’s Fourth Money Laundering Directive transposed into UK law, was delayed. The aim of the service is to act as a single point of contact for trusts and estates to comply with their registration obligations and with notification of any changes.
The new registration system will allow the HMRC to collect up-to-date trust information centrally in line with the requirements of the 4MLD.
Under the new system, any new or existing trusts that generate a ‘tax consequence’ will be required to information on:
· The identity of the settlor
· The trustee
· The protector
· The beneficiaries
· A detailed picture of the assets held
The new requirements to register or update details online apply in any year the trust generates a UK tax consequence. Although this is much more demanding system than of what trustees have previously experienced, trusts that hold collectives will have needed to register under the previous system too. Therefore little more will change other than when and how information is provided.
Trusts that hold no assets other than onshore or offshore single premium investment bonds will be subject to new rules that will presumably mean online registration will not be required unless either a chargeable event occurs or a chargeable occasion for IHT occurs.
Once the new service is in operation, trustees will have until 5th October to register new taxable trusts and until 31st January to provide information on existing trusts.
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