Trust Registration Deadline Has Been Extended

Trustees who missed the September deadline to comply with the expanded scope of the Trust Registration regime have been given a lifeline by HMRC, which announced that penalties will not be imposed on those who missed the cut-off date.

Introduced as part of the UK’s implementation of the Fifth Money Laundering Directive, the new rules aim to counter terrorism and money laundering with improved transparency on the ownership of assets held in trusts.

The scope of the trust register extends to all UK express trusts and some non-UK trusts, regardless of whether they pay tax. Some trusts are excluded if they have a limited purpose and are unlikely to be used for money laundering or financing terrorism.

Taxable trusts must provide detailed information about beneficial owners, including the settlor, trustees, beneficiaries, and others who exercise control over the trust. This includes names, birth details, residence, nationality, and beneficial interests. Changes must be notified within 90 days.

While HMRC has eased the penalties, trustees must ensure compliance to avoid fines of up to £5,000 per trust. It is essential to seek specialist advice if uncertain about compliance.

For further assistance, please call 01724 281616 or email info@sbblaw.com.