Adam’s technical – Trust Registration

New Trust rules have been introduced that stipulate all Trusts need to be registered with HM Revenue & Customs (HMRC) by the 1 September 2022. Previously it was only Trusts that had incurred a tax liability that needed to be registered. This new rule was introduced in 2020 through the fifth money laundering directive to assist in tackling money laundering and terrorist financing.

The majority of the Trusts that we advise clients to use are set-up on a discretionary basis using an Investment Bond wrapper. These will not have been registered previously because they are used for the specific reason that tax does not have to be paid within the Trust. We do this so tax is assessed upon individual beneficiaries as opposed to the more punitive Tax rates.

We will be writing to all impacted clients shortly with the options regarding how to register a Trust. Please note that Morfitt & Turnbull cannot register Trusts because we are not allowed to set-up the type of account that HMRC use for this purpose. However, we will be obtaining all the information HMRC require from our files to assist in registering the Trust.

Please wait to hear from us.

Adam.