In light of recently introduced regulations, UK resident trusts (and non-UK resident trusts that are liable to UK tax) must now maintain a register of beneficial owners. HMRC must be provided with specific information relevant to every UK tax year in which they are liable for tax.
By definition, a beneficial owner in relation to a trust is defined as:
- Named beneficiaries
- Individuals who have control or powers over a trust (may include Protectors)
- Potential beneficiaries named in a letter of wishes
The register must include the beneficial owners full name, date of birth, national insurance number or UTR, and detail the nature of relationship to the trust.
When a trust has a UK tax liability, additional information, including a description of trust assets and value at the time HMRC was first notified of the trust, must also be declared.
Whilst these registers will not be publicly available, they must be readily available to law enforcement agencies upon request.
Existing trusts – Trustees must provide this information by 31 January 2018 or 31 January after the tax year in which they are liable to first pay any of the taxes above.
New trusts – A deadline of 5 October has been implemented following the tax year to register the trust. For trusts established during 2016/17, this has been extended to 5 December 2017.
Please note, failure to comply and provide HMRC with the necessary information is a criminal offence.
The information must be inputted directly on the HMRC portal – it’s important that you confirm if you would like assistance with this, or assurance that you will deal with the register yourself.
If you would like any further information about the new trust register requirements, or if you would like us to assist you with this work, please get in touch with one of our experts.