Trust Registration Service
The Trusts Registration Service (TRS) has now replaced the old paper-based system and provides a single route for trustees to comply with their registration obligations. This is part of the UK’s implementation of the Fifth Money Laundering Directive (or 5MLD for short), which extends the scope of the trust register to all UK and some non-UK trusts, whether or not the trust has to pay any tax, but with some specific exclusions. By September 2022, all trusts must be registered with HMRC Trusts Registration Service with details of the settlor, trustees and beneficiaries for trusts that generate tax consequences.
It’s important to highlight that the responsibility for registration lies with the trustees – including lay trustees. Are you and your clients familiar with the complexities of a trust arrangement, the tax position for trusts that hold property or the penalties that may arise from any oversight?
Since the Trustee Act 2000 became law, the role of a trustee has become much more complex. It’s no longer enough just to be a trustworthy individual. It means understanding how to interpret the terms of the trust, how the trust works and the implications of any action – or inaction. As legal owners, it’s the trustee’s job to administer the trust in the best interest of the beneficiaries, all the while keeping in mind the wishes of the settlor.
WAY Trustees offer a Professional Trustee service and as such, we register with the Trusts Registration Service and ensure every trust that we manage, fully complies with all legal reporting obligations, including submitting tax returns and hold over relief to HMRC on the behalf of a trust settlor and their beneficiaries.
As you would expect, we keep up to date with the latest and ever evolving tax and trust legislation, prepare and distribute clear and accurate annual accounts relating to the trust as well all other administration surrounding the trust.
The benefits of appointing WAY Trustees as independent professional trustees are considerable. It will alleviate the heavy burden placed on lay trustees who may well not be fully aware of the subtleties and intricacies of the trust deed or the consequences of any decisions that may impact the trust in the future. Our personal service, objectivity, specialist knowledge and years of experience mean a far greater level of skill and care in creating and managing the right trust for you.