Her Majesty’s Revenue and Customs (HMRC) and Association of Tax Technicians (ATT) have confirmed that executors do not need to use the Trust Registration Service (TRS) to report the end of the estate administration period.
Some executors know, that not all estates need to involve the TRS or notify HMRC about the end of the administration process.
Since 2017, ‘complex’ estates that are worth over £2.5m and/or have significant income or capital gains are required to register on the TRS, with a note being made of the unique taxpayer reference number.
In April this year, the scope of ‘complex’ estates was amended to encompass anti-money laundering regulations.
HMRC says it would still prefer personal representatives (PRs) and agents to notify the closure of a registered estate to the TRS, but there is no obligation to do so. Notification can instead be made by correspondence as usual, or just by the self-assessment return. HMRC staff will then update the TRS entry themselves. It notes that the TRS should be used to notify HMRC that the name or address of a PR has changed.
The ATT comments that discussions continue as to ‘whether or not it will be necessary for trustees of trusts which closed prior to April 2020 – and who have already reported their closure to HMRC via self-assessment or letter – to also now update their record on the TRS.’
