Advisers need to urge clients to check if any Trusts they hold are registered or risk an unknown fine, as proposed new rules next year mean far more Trusts will need to be registered than ever before.
Since 2017, all express trusts that incur a UK tax consequence have been required to register online with the Trust Registration Service (TRS). But new legislation designed to combat money laundering means that from 2020 all express trusts will need to register, whether or not they have a UK tax liability. The term ‘express trust’ is generally defined as a trust that was expressly (i.e. deliberately) created by a settlor, as opposed to being created in other ways – for example, through a court order or through statute. This is likely to include discretionary trusts, interest in possession trusts, many types of bare trusts, charitable trusts and employee ownership trusts.
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