Posted by James Pearson on 02 Feb 2018

Trust Registration Penalty Deadline Looms

In 2017, HMRC introduced the Trust Registration Service (TRS) for the 2016/17 tax year onwards, in order to comply with the introduction of the EU’s Fourth Directive on money laundering. Deadlines for registration for the 2016/17 tax year have already passed, but the trust registration penalty deadline is now looming, on the 5th March 2018.

New Trust Registration Requirement

TRS registration is required for all trusts (UK or overseas) that have had UK tax income or gains in the tax year. This includes trusts established as employee benefit trusts (EBTs), employer-financed retirement benefit schemes (EFRBS) and funded unapproved retirement benefit schemes (FURBS).

Complex and Time-Consuming Process

Trusts that need to use the TRS have to submit full details of the settlor, trustees, beneficiaries, assets and any advisers for any tax year from 2016/17 onward in which UK taxable income or gains arise. This is a huge amount of information, and for many long-existing trusts obtaining the necessary up to date details are proving to be a severe burden. Find out how to register here.

Extended Deadlines

Registration for the TRS must normally be made by 5 October following the tax year. In recognition of the information gathering difficulties (and issues with HMRC’s systems), the deadlines registration for the 2016/17 tax year were extended to 5 January 2018 for trusts established in the 2016/17 tax year, and to 31 January 2018 for existing trusts. These deadlines have now passed, but HMRC have stated that penalties will not be charged for late registration if the trust is registered before 5 March 2018.

If you have a trust with UK tax consequences in 2016/17 and need assistance in registering with the TRS, or if you simply need to know whether your trust needs to register with the TRS for 2016/17, please contact Tax Innovations to find out how our experienced tax team can help you.

If you would like any advice regarding trust registration or would simply like to discuss other ways in which we could help you or your business, please contact us on 01962 856 990 or


See also…

Trust Investigation

Offshore Trusts

Inheritance Tax on Trusts to Increase

Enterprise Investment Schemes & Venture Capital Trusts

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