HMRC extends scope of Trust Registration Service

HM Revenue and Customs (HMRC) has extended the reach of its Trust Registration Service (TRS) through implementing new legislative changes.

Following this, the scope of the TRS has been extended to cover almost all UK express Trusts and some non-UK express Trusts established on or before 6 October 2020.

The UK TRS came into effect following implementation of the EU’s Fourth Money Laundering Directive. The directive aims to “improve transparency” around the beneficial ownership of assets held in Trusts with UK tax liabilities.

The Fifth Money Laundering Directive, implemented on 6 October 2020, extends the scope of the TRS with limited exclusions and covers certain non-UK trusts, but all UK express trusts. HMRC said Brexit has not affected the obligation to comply, as the directive was transposed into UK law.

Commenting on these developments, Axiom DWFM partner Harry Pattihis said: “This briefing note is an important update on Trusts and in respect of which professional trustees and corporate service providers ought to be aware of the deadlines.”