Important changes are due to come into effect regarding trusts which will require action from Trustees. MPA Financial Advisor Ann Baguley DipPFS explains:

From the 1^st September 2022, trusts will be required to register with HMRC via the Trust Registration Service, even if no taxes are due. Previously, it was only those trusts with a taxable income that needed to register, but from September, many more trusts will be caught in the net.

This will require trusts to designate a ‘Lead Trustee’ who will take responsibility for the registration. This can be delegated to a professional adviser such as a Lawyer or Accountant and we recommend that you take professional advice.

The changes mean:

• all non-taxable trusts in existence on or after 6 October 2020 must register (unless exempt).
• non-taxable trusts created after 1 September 2022 will have 90 days to register.
• changes to registered trust details or circumstances must be notified within 90 days of the change.

Types of trust that will be affected include:

• Bare or Absolute trusts
• Discretionary Gift trusts
• Will trusts still in force after 2 years from date of death

Types of trust that are exempt include:

• Statutory Trusts (such as trusts for bereaved children)
• Disabled Persons Trusts and Personal Injury Settlements
• Charitable Trusts
• Trusts used solely for life insurance where the life assured is still alive.

Please note that this list is not exhaustive, and we recommend that you discuss your specific circumstance with a qualified professional

More information and a link to the Trust Registration Service can be found at:

Manage your trust’s details – GOV.UK (www.gov.uk)

As always, if you would like further information please contact your Adviser directly.

Alternatively, should you wish to speak to an Adviser please call 01564 795 997.