The UK government has updated the rules governing the Trust Registration Service (TRS), relaxing some of the registration requirements. According to B P Collins’ private client team, it’s important that trustees review whether their trusts are affected as soon as possible.
Exemption for low-value trusts
Previously, a trust’s low value did not, by itself, exempt it from registration. Most UK express trusts had to be registered with HMRC’s TRS, even where no UK tax was due, unless they qualified for another specific exclusion. Trustees were required to provide details of the trust and the people connected with it, including its settlor, trustees and beneficiaries, and keep that information up to date.
Now, a low value trust no longer needs to register, and could be eligible to de-register, if it:
- has no UK tax liability;
- holds no interest in UK land;
- owns no assets exceeding £2,000 in total which are likely to appreciate, such as art, jewellery or antiques;
- has never held accumulated assets worth more than £10,000 since its creation; and
- receives no more than £5,000 in annual income.
If a settlor has created several express UK trusts, only one can qualify for this exemption.
Overseas trusts to register by 1 September 2027
Non-UK trusts must register with the TRS by 1 September 2027 if they buy UK land or hold UK land acquired before 6 October 2020. Previously, owning land acquired before that date did not, by itself, trigger registration. With the new rules, a late registration can result in a £5,000 fixed penalty.
What should trustees do?
Trustees should review:
- whether a low-value trust remains registrable or can be de-registered; and
- whether any non-UK trust holding UK land must register by 1 September 2027
How we can help
B P Collins’ private client team can advise on TRS registration and de-registration requirements today. Please get in touch with Sharon Heselton or our private client lawyers at enquiries@bpcollins.co.uk or call 01753 889995.
