Trust Registration Deadline Extended for Non-Taxpaying Trusts
HMRC have confirmed that the March 2021 target for upgrading the Trust Registration Service (TRS) to allow non-taxable trusts to register will not be met.
The general requirement for all express trusts to register on the TRS was introduced by the EU Fifth Anti-Money Laundering Directive (5AMLD), though the UK’s implementation of the rule will permit some exceptions, for example UK-regulated charitable trusts and most will trusts. Non-UK trusts that acquire land or property in the UK will also be required to register, unless already registered in an EU Member State.
It was previously estimated that the redesign work would be completed in March 2021. However, that target has now been pushed back until sometime this summer. HMRC will issue a revised timetable in due course. HMRC acknowledge that as the volume of trusts who will be required to register is so high, they need allow around a year for registration to take place. The new deadline is to be approximately 12 months from the date that the system redesign is complete.