What Is the Trust Registration Service (TRS) in the UK?

The Trust Registration Service (TRS) is HMRC's register of trusts and complex estates. Introduced in 2017 and significantly expanded from 2022, TRS now requires most UK trusts and some non-UK trusts with UK connections to register with HMRC, regardless of whether the trust has any tax liability. Failure to register on time carries penalties.

Background: Why TRS Exists

TRS was introduced as part of the UK's implementation of the EU's 4th and 5th Anti-Money Laundering Directives. The aim is to increase transparency about beneficial ownership of assets held in trust structures. HMRC is the responsible authority for trust registration in the UK.

Who Must Register?

All express trusts must register — an express trust is one deliberately created rather than arising by operation of law. This includes: trusts with a UK tax liability (income tax, CGT, IHT, SDLT, or LBTT); non-taxable UK trusts (most trusts, including bare trusts holding assets for children, will trusts, protective trusts, and most family trusts without tax liabilities); non-UK trusts that acquire UK land or property, have at least one UK-resident trustee and enter into a business relationship in the UK, or hold UK assets generating a UK tax liability.

Who Is Exempt?

Certain trusts are excluded from TRS: registered pension schemes; charitable trusts registered in England and Wales, Scotland, or Northern Ireland; co-ownership trusts (where two or more people jointly own property for themselves); will trusts that wind up within 2 years of death; trusts of life policies that only pay out on death, terminal illness, or disability; Child Trust Funds and Junior ISAs.

What Information Is Required?

Trusts must provide: the name and date of establishment of the trust; details of each trustee (name, date of birth, National Insurance number or passport number, country of residence and nationality); details of beneficiaries and potential beneficiaries — including named individuals and a description of classes of beneficiaries; details of the trust's assets and values (at initial registration).

Deadlines

Taxable trusts must register by 5 October following the tax year end in which they first became liable to tax. Non-taxable UK trusts that existed before 6 October 2020 had a registration deadline of 1 September 2022. New non-taxable trusts created on or after 6 October 2020 must register within 90 days of creation. Non-UK trusts with UK connections must also register within 90 days of the triggering event.

Penalties

HMRC can charge penalties for failure to register or failure to keep registration up to date. Penalty amounts depend on whether the failure was deliberate. Trustees should designate responsibility for TRS registration and set calendar reminders when new trusts are created or trust assets or beneficiaries change.