Trust Registration Service Updates

23 Oct 2022

Last week, we received a number of updates from HMRC on aspects of the Trust Registration Service (TRS). 

Additional question on data sharing

The TRS has been updated to include the question: ‘Does the trust have a Schedule 3A data sharing exemption?’ HMRC have placed an update on the Agent Forum and asked trustees to return to the TRS as soon as possible to complete this additional question and keep their record up to date.

The background to the question is that certain express trusts are excluded from registration on the TRS. These trusts are set out in Schedule 3A of The Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 and are referred to in GOV.UK guidance as Schedule 3A trusts. A list of Schedule 3A trusts can also be found in the HMRC manual at TRSM23000

However, even though a Schedule 3A exclusion may apply, if the trust subsequently acquires a liability to pay income tax or CGT and needs a UTR, or incurs any of the other three taxes (IHT, SDLT/LBTT/LTT or stamp duty reserve tax) which would bring it within the definition of a relevant taxable trust, the trust will need to register on the TRS.

Since the data sharing provisions that came into force on 1 September 2022, and which allow third parties to request details of information held on the register in certain instances, do not apply to express trusts which fall within the list of trusts under Schedule 3A, this question has been added so that HMRC can identify such trusts to ensure that they are not subject to data sharing.

The additional question is to the benefit of affected trustees and their beneficiaries as it will maintain their confidentiality. Further guidance can be found on GOV.UK https://www.gov.uk/guidance/register-your-clients-trust.

Premium Bonds and National Savings Certificates held for minors

The TRS Manual now states that because a premium bond purchased by an adult in the name of a minor does not create an express trust it is not registerable on the register.

National Savings Certificates purchased similarly are also outside of TRS registration, unless they have been specifically purchased by trustees of an express trust for a minor child.