Compulsory Trust Registration Reminder
Vicky Bligh, Head of Private Client Services | 13th September 2022
In April we posted a note about Compulsory Trust Registration, explaining that new Regulations were coming into force which will require most Trusts to be registered with HMRC by September 1st 2022, including those on which no tax is payable.
Although this deadline has passed, we understand that HMRC are being lenient at the moment and are still encouraging people to come forward and register their Trusts, without penalty but this leniency will come to an end at some point. Therefore if you have a Trust which you think might need registering or know someone else who does, then we would encourage you to take some action, now.
By way of reminder these regulations apply to the type of trust, which we commonly used for protection of family assets, in a Will called an IPDI trust but more commonly known as a life interest trust. It is often used is in relation to the family home, whereby from the death of the first spouse, his/her half share of the property is held on trust for the benefit of the surviving spouse and on the survivor’s death passes to the children of the first to die. There are likely to be many of these trusts in existence where the first spouse has died and the survivor is living in the family home and the Trustees are not aware that these regulations apply to them.
If you think these Regulations may apply to a trust that you are connected with, please feel free to contact Vicky Bligh for clarification. Although we do not deal with the registration of trusts, we can point you in the right direction.
You can read the previous article regarding Compulsory Trust Registration by clicking here.
