REGISTERING A TRUST - AN UPDATE Reshan Ragunathan at Kreston Reeves reveals the latest rules for the HMRC Trust Register Where an individual is holding property for the benefit of others, under a formal or non-formal trust arrangement they should check if the trust needs to be registered, as recent changes mean the rules are now more complex. Fines will also be issued for non-compliance. HMRC is continuing to provide clarity on how significant changes to legislation for the registration of trusts under the Fifth Money Laundering Directive apply to the HMRC Trust Register. This includes further details on the type of trust arrangements that need to be registered and the deadlines for doing so. Unless a trust falls within one of the currently excluded categories (see below) and has incurred no tax liability, then the trust must be registered on the HMRC Trust Register by September 1, 2022 or 90 days after creation of the trust, whichever is later. Reshan Ragunathan PROMOTION EXCLUDED TRUST CATEGORIES: The excluded trust category types which are most commonly applicable to private individuals acting as trustee are": Will Trusts closed within two years of the date of death of the testator/testatrix Trusts where a disabled person is the beneficiary Pilot trusts created before October 6, 2020 and that have always held less than £100 Property ownership trusts where the beneficiaries and trustees are the same persons Trusts imposed by legislation or a court order Charitable trusts Bank accounts or stocks and shares ISAS for minors Trusts arising from insurance policies and compensation pay-outs Trusts registered on the European Economic Area (EEA) register Various details and conditions underlie these categories. For example, where a residential property is left under a Will Trust then depending on the circumstances, there may be a requirement to register two trusts. Therefore, it is still advisable for trustees to seek confirmation from their tax advisor before taking no action to register a trust. If a trust incurs a tax liability for the first time and is in one of the categories above, then the deadline for registration of September 1, 2022 or within 90 days of the date in which the trust first becomes liable for tax, whichever is later. In addition, where any changes are made to any of the Trust's details recorded on the Trust Register (e.g., trustees/beneficiaries added or removed, or their contact details) then the register must also be updated within 90 days of these changes. HMRC have also reiterated the warning that they will begin to issue penalties in September 2022 for non-compliance of these measures. The obligations trustees have on the HMRC Trust Register are becoming an increasing complex area and so often require guidance and assistance by a suitably qualified advisor. Therefore, please feel free to contact a member of our Trust team if you have any queries in t this area. KRESTON *REEVES Reshan Ragunathan, trust and estates tax assistant manager at Kreston Reeves can be contacted via email at reshan.ragunathan@krestonreeves.com. Visit krestonreeves.com or call us on 0330 124 1399 *Conect at the time of publication but may be subject to change by HMRC in the M REGISTERING A TRUST - AN UPDATE Reshan Ragunathan at Kreston Reeves reveals the latest rules for the HMRC Trust Register Where an individual is holding property for the benefit of others , under a formal or non - formal trust arrangement they should check if the trust needs to be registered , as recent changes mean the rules are now more complex . Fines will also be issued for non - compliance . HMRC is continuing to provide clarity on how significant changes to legislation for the registration of trusts under the Fifth Money Laundering Directive apply to the HMRC Trust Register . This includes further details on the type of trust arrangements that need to be registered and the deadlines for doing so . Unless a trust falls within one of the currently excluded categories ( see below ) and has incurred no tax liability , then the trust must be registered on the HMRC Trust Register by September 1 , 2022 or 90 days after creation of the trust , whichever is later . Reshan Ragunathan PROMOTION EXCLUDED TRUST CATEGORIES : The excluded trust category types which are most commonly applicable to private individuals acting as trustee are " : Will Trusts closed within two years of the date of death of the testator / testatrix Trusts where a disabled person is the beneficiary Pilot trusts created before October 6 , 2020 and that have always held less than £ 100 Property ownership trusts where the beneficiaries and trustees are the same persons Trusts imposed by legislation or a court order Charitable trusts Bank accounts or stocks and shares ISAS for minors Trusts arising from insurance policies and compensation pay - outs Trusts registered on the European Economic Area ( EEA ) register Various details and conditions underlie these categories . For example , where a residential property is left under a Will Trust then depending on the circumstances , there may be a requirement to register two trusts . Therefore , it is still advisable for trustees to seek confirmation from their tax advisor before taking no action to register a trust . If a trust incurs a tax liability for the first time and is in one of the categories above , then the deadline for registration of September 1 , 2022 or within 90 days of the date in which the trust first becomes liable for tax , whichever is later . In addition , where any changes are made to any of the Trust's details recorded on the Trust Register ( e.g. , trustees / beneficiaries added or removed , or their contact details ) then the register must also be updated within 90 days of these changes . HMRC have also reiterated the warning that they will begin to issue penalties in September 2022 for non - compliance of these measures . The obligations trustees have on the HMRC Trust Register are becoming an increasing complex area and so often require guidance and assistance by a suitably qualified advisor . Therefore , please feel free to contact a member of our Trust team if you have any queries in t this area . KRESTON * REEVES Reshan Ragunathan , trust and estates tax assistant manager at Kreston Reeves can be contacted via email at reshan.ragunathan@krestonreeves.com . Visit krestonreeves.com or call us on 0330 124 1399 * Conect at the time of publication but may be subject to change by HMRC in the M