Trust registration frustration continues as deadline delayed- again

Trust registration frustration continues as deadline delayed- again

Mon 20 Nov 2017

Trusts that were going to have to register under HMRC’s Trust registration Service (TRS) by 5 December 2017 now have until 5 January 2018 as the deadline (originally 5 October) has had to be deferred once more.

New trusts

The re-revised deadline of 5 January 2018 applies if the trust:
• was set up before 6 April 2017 but is not registered for self-assessment; and
• “had a UK tax consequence” (in plain language, had tax that became payable) in 2016/17.

Existing trusts registered for self assessment

The TRS deadline for registering an existing trust that is already registered for self-assessment is still 31 January 2018.

Existing trusts are not exempt from registering because they are already known to HMRC and have previously registered but they do not have to register if they had no UK tax consequence in 2016/17

Tax consequence

A trust had a UK tax consequence for this purpose in 2016/17 if it had a liability to pay at least one of the following UK taxes:
• income tax
• capital gains tax
• inheritance tax
• stamp duty land tax
• stamp duty reserve tax; or
• land and buildings transaction tax (Scotland)

Overseas trusts

Overseas trusts only have UK tax consequences if the UK tax they have to pay relates to assets sited, or income arising in the UK.

Trusts that have been wound up

If a trust that had a tax consequence in 2016/17 has since been wound up, the trustees are still obliged to register and HMRC may penalise them if they fail to do so. This is not an idle threat: the trustees may be personally liable for penalties.


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