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New HMRC requirements for Trusts and Complex Estates

POSTED BY: Jenna Hann

06 December 17
New legislation has recently come into force in relation to trusts and complex estates in the form of a new trust registration service.
The trust registration service has been created to comply with the requirements of the Forth Money Laundering Directive and will provide greater transparency going forward allowing HMRC to collect, hold and retrieve information in a central electronic register.
Previously when registering a trust with HMRC a form 41G would have been required, however this has now been abolished and replaced by the Trust Registration Service.
The register will provide a single point of access for trustees and personal representatives to update their details online to comply with reporting requirements and will replace the previous ad-hoc processes of notifying HMRC of changes in their circumstances.
This does not just affect new trusts, existing trusts must also register under this service if it has incurred a liability, in a given tax year to any of the following UK taxes-
  • Income tax
  • Capital gains tax
  • Inheritance tax
  • Stamp duty land tax and reserve tax
  • Land and buildings transaction tax (Scotland)

Complex estates, which are mainly estates whereby they do not meet the conditions for using the informal payment procedures must also register under this service.
The deadline for registering new trusts was originally 5 December 2017 however this has now been delayed until 5 January 2018. The deadline for existing trusts is 31 January 2018.
Planning Note:
Penalties will be issued for failure to comply with the new registration service. The Revenue will be setting out the penalty framework shortly.

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