Briefing document 

Introduction

UK trusts and certain non-UK trusts with a UK connection must register with HMRC and provide required information, including details of settlors and beneficiaries. The public can access this information in some circumstances. Deadlines for provision and updating of information apply. This note provides a high-level overview of the trust register.

Trusts required to register 

Express trusts

The registration requirements apply only to ‘express trusts’, which HMRC define as “a trust deliberately created by a settlor…”

Express trusts can be created either during lifetime or on death under the terms of a will. HMRC comment that express trusts do not include “trusts that come into being through the operation of the law and that do not result from the clear intent or decision of a settlor to create a trust or similar legal arrangement (for example, implied or constructive trusts).”

An example of a non-express trust that does not need to register is a trust created on intestacy (i.e. on the death of an individual who did not have a valid will).

Express trusts that must register 

The following express trusts must register with HMRC: 

1. UK trusts, which are trusts that only have UK resident trustees or that have at least one UK resident trustee and a UK resident and domiciled settlor (at point of settlement or addition to the trust).  

2. Non-UK trusts that incur a UK tax liability on UK income or UK assets. UK taxation of non-UK income and assets does not meet this requirement (albeit in practice registration may be needed in order to obtain a unique taxpayer reference). 

3. Non-UK trusts that acquire an interest in UK land after 5 October 2020.  

4. Non-UK trusts with at least one UK resident trustee that, after 5 October 2020, enter into a business relationship with a UK relevant person (such as tax advisers, lawyers and financial institutions) with an ‘element of duration’. HMRC’s manual states that, generally, this will include business relationships that go “beyond a one-off, short-lived transaction”. 

Non-taxable trusts within categories 1, 3 or 4 may not need to register if they are “excluded trusts”. In some cases, registration is not required on the UK’s trust register if a trust is registered on the trust register of an EEA Member State. 

UK tax liability 

Trusts are considered to be taxable if the trustees have a liability to income tax, capital gains tax, inheritance tax, stamp duty land tax (SDLT - England and Northern Ireland), land and buildings transaction tax (Scotland), land transaction tax (Wales) or stamp duty reserve tax. 

UK residence

Individual trustees are resident for trust register purposes if they are resident for any of the aforementioned taxes. This means under the statutory residence test for income tax and capital gains tax and/or under the SDLT residence test. Corporate trustees are UK resident if they are UK incorporated. 

Excluded trusts

Excluded trusts, which may not need to register if non-taxable, include:  

• Trusts that were created to open a bank account for a minor child or a person who lacks capacity, as defined. 

• Trusts for bereaved minors or disabled persons, as defined. 

• Will trusts created on death that only receive assets from the estate and which are wound up within two years of death. 

• Trusts that hold life policies that only pay out on the death, terminal or critical illness, or temporary or permanent disablement of the person assured, or to meet the cost of healthcare services provided to that person. In addition, trusts of insurance policies taken out at the same time as one of the aforementioned life policies that only pay out on the temporary disablement of the person assured, or to meet that person’s healthcare costs.  

• UK registered charitable trusts and unregistered English or Welsh charitable trusts that satisfy a registration exemption in the Charities Act 2011. 

• Co-ownership trusts where the trustees and the beneficiaries are the same persons. 

• UK registered pension schemes. 

• Share incentive plans. 

There are some notable exceptions from the exclusions. Registration is required by: 

• Taxable trusts, as set out in the ‘UK tax liability' section above. 
• Trusts of any value, except pre-6 October 2020 trusts with assets worth less than £100 which have not been added to since that date. This means that many common and often long-standing trusts must register, including trusts created on death that enable a surviving spouse to occupy the family home for life with the trust assets subsequently passing to the children (assuming more than two years have elapsed since death). 
• Bare and co-ownership trusts with different trustees and beneficiaries, unless a specific exclusion applies.  

Trusts registered in the European Economic Area (EEA)

UK trusts and non-UK trusts that i) do not have a UK tax liability and ii) have at least one UK resident trustee, do not need to register with HMRC if they are established in an EEA Member State and are registered on that state’s trust register. The EEA comprises the EU Member States, Norway, Iceland and Liechtenstein. The examples in HMRC’s manual on determining where a trust is ‘established’ consider trustee residence and the place of administration.  

Information to be provided 

A range of information must be provided about trusts and their beneficial owners. ‘Beneficial owners’ are defined as being the settlor(s), beneficiaries, trustees and any individual who has control over a trust, which can include trust protectors. 

HMRC use the Trust Registration Service (TRS) to collect information and register trusts. The appendix summarises the information required. The exact information required by HMRC changes from time to time. 

Deadlines 

Registration

Trusts must register within 90 days of triggering a registration requirement. 

Updates required by non-taxable trusts

HMRC must be updated within 90 days of trustees becoming aware of a change to reported information. In addition, certain UK trusts and non-UK trusts with at least one UK resident trustee must provide required information within 90 days of acquiring an interest in a legal entity which is neither a UK nor EEA entity. 

Updates and annual confirmations required by taxable trusts

A deadline of 31 January following the end of the tax year (5 April) applies for trustees of taxable trusts to inform HMRC of any changes to the trust, or, if none, to confirm that there are no such changes to report.

In addition, taxable trusts must update HMRC within 90 days of certain events occurring, unless the trust is an excluded trust or registered in the EEA. The relevant events are:

• Acquisition of UK land by a non-UK trust, unless the required information has previously been provided. 
• Entering into a business relationship with a relevant person, if the trust is a non-UK trust with at least one UK resident trustee, unless the required information has previously been provided. 
• Acquisition of an interest in a legal entity which is not situated in either the UK or EEA. This point is relevant to both UK trusts and non-UK trusts with at least one UK resident trustee.
• Becoming aware of a change to certain information about any ‘beneficial owner’ of the trust (as defined) who is an individual. The information is nationality, country of residence and/or nature and extent of that individual’s trust interest. 
• Becoming aware of a change to information provided about interests in non-UK/EEA legal entities. 

Public access to information 

• HMRC will share information about trusts which are either: 

A.    UK express trusts that are neither excluded nor EEA registered. 

B.    Non-UK express trusts with at least one UK trustee that are neither excluded nor EEA                     registered, where the trustees either acquire UK land or enter into a business relationship             with a UK relevant person. 

• Information is generally available on request to persons with a ‘legitimate interest’, which broadly means that the requester is investigating money laundering, terrorist financing or proliferation financing, with reasonable grounds to do so in relation to the trust about which information is sought.   

• There is no legitimate interest requirement where the trustees have a controlling interest in a non-UK, non-EEA legal entity. 

• HMRC will not share information about trusts that are neither type A nor B trusts. Notably, this means that HMRC will not share information about trusts that only have non-UK trustees, nor will data be shared about excluded trusts, even if the excluded trust is required to register with HMRC due to having a tax liability.    

• Where data is shared, HMRC will share information about the trust’s beneficial owners. Exemptions can apply if the beneficial owner is a minor or lacks capacity (as defined), or if sharing trust data would present a disproportionate risk of harm to the beneficial owner. HMRC will not share details of the trust’s assets. 

Appendix: Information that HMRC collects

Below is a broad summary of the information that the Regulations require HMRC to collect. The exact information required can vary depending on the trust’s specific fact pattern and HMRC’s practice, which changes from time to time. 

• The trust itself

• The full name of the trust

• The date the trust was set up

• A statement of accounts for the trust, including valuations of trust assets on the date the trust was created, identifying the value of each category and including the addresses of trust properties

• The country in which the trust is tax resident. There are some variations between the definitions of trust residence for the purpose of the trust register and for the purposes of income tax and capital gains tax 

• The place where the trust is administered

• A contact address for the trustees

• The full name of any advisers who are paid to provide legal, financial or tax advice in relation to the trust. In practice, HMRC have not historically requested details of all paid advisors to the trust, but have requested details of paid tax advisers 

Most registrable UK trusts and registrable non-UK trusts with at least one UK resident trustee must provide: 

• Details of controlling interests in non-UK, non-EEA entities, including the entity’s corporate or firm name, governing law and registered or principal office 

• Details of acquisitions of interests in non-UK, non-EEA entities within 90 days of acquiring the interest(s) 

Individuals

The following information is required in relation to individuals who are ‘beneficial owners’:  

• Full name 
• National insurance or unique taxpayer reference number, if available, or, if unavailable, the individual’s usual residential address. If an individual provides a usual residential address which is not in the UK, they should provide their passport or individual identification number, and the country of issue and expiry date of the documentation 
• Date of birth
• The nature of the individual’s role in relation to the trust, and in some cases the extent of their beneficial interest.  
• The individual’s nationality
• The individual’s country of residence 

If there is a class of beneficiaries, details of the class should be provided. For example, this could be ‘grandchildren of the settlor’ or ‘employees of company X’. If an individual is a named beneficiary who is also part of a class, HMRC state that details of that individual must be provided as set out above.  

Legal entities

• The following information is required for legal entities that are beneficial owners in relation to the trust: 

• Corporate or firm name

• Unique taxpayer reference, if any

• Registered or principal office

• Legal form and law by which the entity is governed

• If applicable, the name and country of the register of companies in which the legal entity is entered, plus registration number

• The nature of the entity’s role in relation to the trust

Controlling businesses

If a trust is controlled by a business (which, for example, may arise with trusts for the benefit of employees), the business or organisation name must be provided. If the business is registered with HMRC the business’s unique taxpayer reference must be provided. If it is not so registered, the registered address of the business must be provided.