The launch of HMRC’s new online Trusts Registration Service has been delayed.
Following the removal of the 41G Trust form, the launch of the service was due to correspond with the new requirements introduced by the EU’s Fourth Money Laundering Directive. However, this date has now been set back.
In line with the new requirements under the 4MLD, the online register will enable HM Revenue & Customs (HMRC) to gather up-to-date information on trusts. For any trust which generates a “tax consequence”, the following information will be required:
- The settlor’s identity
- The trustee
- The protector
- The beneficiaries
- Anyone else exercising control over the trust
- Detailed information of the trust’s assets
This puts a greater responsibility on those who have previously not needed to report using the 41G form. Differing from the new requirement, reporting was not required where there was “no income arising, and no likelihood of income or gains in the future.”
Under the new regulation, the obligation to update or register details is required in any year that the trust creates any kind of UK tax consequence.
However, as collective holding trusts will have been subject to registration requirements under the old system, the focus is more likely to be on the provision and timing of the reporting.
Where trusts do not hold assets, it is likely that registration will not be required at all, except where a chargeable event takes place. Details on this are yet to be confirmed.
HMRC have requested that notification of new trusts should be delayed until the service is fully operational. During this period, it has asked those completing tax returns to simply leave the box blank which asks for confirmation that any trust changes have been updated on the register.
The main of the service is to provide is to simplify the compliance process for trusts and estates by providing a single contact point, and give updates on any changes.
When the service does launch, trustees will have until 5 October to complete registrations on new trusts, with the deadline extended to the 31 January for those which already exist.
