New rules introduced on 6 October 2020 extended the scope of the trust register to UK and some non-UK trusts, with some specific exclusions, regardless of whether the trust is liable to pay any tax. You can read more about this in <a href="https://www.gov.uk/hmrc-internal-manuals/trust-registration-service-manual/trsm10000">HMRCs manual</a> which is being updated on a regular basis.

What types of trust need to register?

The types of Canada Life trusts holding investment bonds that need to register are: <ul> <li>Wealth Preservation Account</li> <li>Bare Discounted Gift Trust</li> <li>Discretionary Discounted Gift Trust</li> <li>Controlled Access Account</li> <li>Bare Gift and Loan</li> <li>Discretionary Gift and Loan</li> <li>Bare Probate</li> <li>Discretionary Probate</li> <li>Excluded Property</li> <li>Bare Gift Trust</li> <li>Discretionary Gift Trust</li> </ul> In addition to the range of Canada Life trusts, if a non-UK express trust has at least one trustee resident in the UK, the trust must be registered, unless specifically excluded from registration, when either of the following is true: <ul> <li>the trustees, in their capacity as trustees, acquire UK land or</li> <li>the trustees, in their capacity as trustees, enter a business relationship with a UK relevant person.</li> </ul>

What trusts are exempt?

Currently, the following trusts do not need to be registered: <ul> <li>Trusts created by Will (A trust created by Will that holds only property from the estate of the deceased person is excluded from registration as an express trust but only for a period of two years from the date of death).</li> <li>Trusts used to hold life or retirement policies providing that the policy only pays out on death, terminal or critical illness or permanent disablement, or to meet the healthcare costs of the person assured, including life policies with surrender values.</li> <li>Trusts for bereaved minors</li> <li>Statutory Trust</li> <li>Resulting Trust</li> <li>Personal Injury Trusts</li> <li>Co-ownership Trusts</li> <li>Charitable trusts</li> <li>UK registered pension schemes</li> <li>Disabled Persons Trust</li> <li>Pilot Trusts that were set up before 6 October 2020 and hold less than £100</li> <li>Trusts arising in finance markets infrastructure</li> <li>Trusts in relation to activities on the capital markets</li> <li>Legislative trusts</li> <li>Trusts imposed by court order</li> <li>Trusts registered on a European Economic Area (EEA) register</li> </ul> Most trusts relating to protection products, including the following, do NOT need to be registered with the Trust Registration Service: <ul> <li>The Canada Life Group Master Trust</li> <li>The Canada Life Excepted Solution</li> <li>Registered Group Life trusts established by employers</li> <li>Excepted Group Life trusts except in the very rare circumstances tax is payable</li> <li>Trusts associated with individual protection policies where those are the only items in the trust</li> </ul> In addition, further changes to legislation are planned to ensure that trusts created in the course of setting up a bank account for minors or vulnerable persons are excluded from registration.

How is the Wealth Preservation Account affected?

HMRC have confirmed that where the trustees differ on both the initial trust and discretionary settlement, two separate registrations must take place. However, where the trustees are the same on both trusts then only one registration is required. It is important to note that where any change occurs on either trust in the future, which means that there is a difference in the legal or beneficial ownership, such as a trustee change which only impacts one trust, then the trust impacted by the change will need to be registered separately.

What about whole of life protection policies?

Based on current guidance it is our understanding that whole of life (WOL) protection policies with surrender values are excluded in certain circumstances from registering with the Trust Registration Service (TRS).Therefore, provided that no surrenders are made on the WOL policy during the life assureds lifetime, the trust will not be required to register for TRS purposes. However, if surrender does occur during lifetime of life assured and proceeds are retained in the trust there will be a registration requirement. Where the policy surrenders as a result of the death of the life assured, the exclusion is extended for 2 years after which if the funds haven’t been distributed to the beneficiaries there will be a registration requirement from that point. Further information can be found here <a href="https://www.gov.uk/hmrc-internal-manuals/trust-registration-service-manual/trsm23030">TRSM23030 - Trust Registration Service Manual - HMRC internal manual - GOV.UK (www.gov.uk)</a>

Where do I register my trust?

You can register your trust <a href="https://www.gov.uk/guidance/register-a-trust-as-a-trustee">here. </a>

When do I have to register my trust by?

All UK express trusts (taxable and non-taxable) are now required to register with HMRC, unless the trust is excluded. All registrations for non-taxable trusts in existence on or after 6 October 2020 now need to be registered. Non-taxable trusts created after 1 September 2022 must register within 90 days. Any changes made to the trust, such as death of settlor, or change of trustees and/or beneficiaries, must be recorded on the register within 90 days of when the event occurred.

What happens if I don’t register my trust?

Failure to register your trust could result in a fine.

Who can register a trust?

In addition to trustees, a tax agent can register the trust on the trustee’s behalf. However, financial advisers are not currently able to on behalf of their clients.

Does the register need to be updated if any information changes?

Yes. If any changes are made to the trust, for example: death of settlor, a change of trustee or beneficiary, termination of the trust or change of address of any of the parties to the trust, the register will need to be updated within 90 days of the event.

Where can I find out more?

If you have any questions, we recommend contacting your financial adviser. You can also find out more on HMRCs website <a href="https://www.gov.uk/guidance/register-a-trust-as-a-trustee">here.</a>

When will we ask for Trustees to provide proof of TRS?

We are required to collect proof of the registration of the trust on an ongoing basis when certain “events” occur, such as: <ul> <li>Applications for new business</li> <li>When additional premiums are paid to existing policies</li> <li>Requests for maturities/surrender/withdrawals</li> <li>Payment of funds to beneficiaries</li> <li>Changes of trustees.</li> <li>Appointments and assignments to beneficiaries</li> <li>Change of beneficiaries</li> </ul> Failure to provide the information requested will delay any application or trustee requests.

How do I provide proof of TRS?

We have produced a how to guide to show you how to produce the appropriate PDF print out of the Trust record here.

Trust Registration Service

The following information relates primarily to trusts used to hold investment bonds. Most trusts related to protection products, for example those in our Group insurance policies, will not need to register.

HMRC's Trust Registration Service has changed - have you registered your trust?

What is the Trust Registration Service?

The Trust Registration Service (TRS) is a register of the beneficial ownership of trusts. It was set up in 2017, requiring trustees to register if their trust was liable to pay the following taxes: income tax, capital gains tax, inheritance tax, Stamp Duty Land Tax (Land and Buildings Transaction Tax in Scotland) or Stamp Duty Reserve Tax.

Further legislation came into force, requiring the majority of UK resident non-taxable trusts in existence on or after 6 October 2020 to be registered by the trustees on the HMRC Trust Registration Service.

Trusts created from the 1 September 2022 must register within 90 days.

We (along with all the other investment providers) have a requirement to collect evidence of the trust’s registration on TRS and check the beneficial ownership information on the trust record matches our own records. Where we find material discrepancies between the two or come across cases which have not been registered on TRS, we have an obligation to report these to HMRC.

The regulations are changing

From 1 April 2023, we will have to collect details of the Unique Reference number (URN) of the trust, together with evidence of the TRS trust record of beneficial ownership and record it on the policy record for both new business and existing business set up before 1 September 2022.

We aim to do this whenever an “event” occurs in the Trust or on the policy, such as a change of trustee, appointment of or to a beneficiary, a deferral request, withdrawal or surrender request. If the evidence of registration is sent to us with any request, this will help prevent any delays.

We’ll be regularly updating this page with further advice provided by HMRC.

What information do HMRC require?

As a trustee, you’ll need to provide HMRC with the details of:

The trust
Settlor
Trustees
Beneficiaries
Any individual who has control over the trust, in some instances referred to as protectors.

You can find out more and register your trust here.

Information hub

Here you can find important information and documents relating to changes to the Trust registration Service. This section will be regularly updated as we receive more information from HMRC.

TRS guide

We've produced a helpful step-by-step guide with a supporting example to help you register your Trust

Read now

TRS Bulletin

This Technical Bulletin will detail the key requirements of the Trust Registration Services in the UK & Ireland and the impact of the 5th Anti-Money Laundering Directive (5AMLD)

Read now

TRS Webinar

Watch the latest webinar with our technical expert Chris Kneen, explaining the change to TRS on 1 April.

Watch now

FAQs

The types of Canada Life trusts holding investment bonds that need to register are:
- Wealth Preservation Account
- Bare Discounted Gift Trust
- Discretionary Discounted Gift Trust
- Controlled Access Account
- Bare Gift and Loan
- Discretionary Gift and Loan
- Bare Probate
- Discretionary Probate
- Excluded Property
- Bare Gift Trust
- Discretionary Gift Trust
In addition to the range of Canada Life trusts, if a non-UK express trust has at least one trustee resident in the UK, the trust must be registered, unless specifically excluded from registration, when either of the following is true:
- the trustees, in their capacity as trustees, acquire UK land or
- the trustees, in their capacity as trustees, enter a business relationship with a UK relevant person.
Currently, the following trusts do not need to be registered:
- Trusts created by Will (A trust created by Will that holds only property from the estate of the deceased person is excluded from registration as an express trust but only for a period of two years from the date of death).
- Trusts used to hold life or retirement policies providing that the policy only pays out on death, terminal or critical illness or permanent disablement, or to meet the healthcare costs of the person assured, including life policies with surrender values.
- Trusts for bereaved minors
- Statutory Trust
- Resulting Trust
- Personal Injury Trusts
- Co-ownership Trusts
- Charitable trusts
- UK registered pension schemes
- Disabled Persons Trust
- Pilot Trusts that were set up before 6 October 2020 and hold less than £100
- Trusts arising in finance markets infrastructure
- Trusts in relation to activities on the capital markets
- Legislative trusts
- Trusts imposed by court order
- Trusts registered on a European Economic Area (EEA) register
Most trusts relating to protection products, including the following, do NOT need to be registered with the Trust Registration Service:
- The Canada Life Group Master Trust
- The Canada Life Excepted Solution
- Registered Group Life trusts established by employers
- Excepted Group Life trusts except in the very rare circumstances tax is payable
- Trusts associated with individual protection policies where those are the only items in the trust
In addition, further changes to legislation are planned to ensure that trusts created in the course of setting up a bank account for minors or vulnerable persons are excluded from registration.
HMRC have confirmed that where the trustees differ on both the initial trust and discretionary settlement, two separate registrations must take place. However, where the trustees are the same on both trusts then only one registration is required. It is important to note that where any change occurs on either trust in the future, which means that there is a difference in the legal or beneficial ownership, such as a trustee change which only impacts one trust, then the trust impacted by the change will need to be registered separately.
Based on current guidance it is our understanding that whole of life (WOL) protection policies with surrender values are excluded in certain circumstances from registering with the Trust Registration Service (TRS).Therefore, provided that no surrenders are made on the WOL policy during the life assureds lifetime, the trust will not be required to register for TRS purposes. However, if surrender does occur during lifetime of life assured and proceeds are retained in the trust there will be a registration requirement.

Where the policy surrenders as a result of the death of the life assured, the exclusion is extended for 2 years after which if the funds haven’t been distributed to the beneficiaries there will be a registration requirement from that point.

Further information can be found here TRSM23030 - Trust Registration Service Manual - HMRC internal manual - GOV.UK (www.gov.uk)
All UK express trusts (taxable and non-taxable) are now required to register with HMRC, unless the trust is excluded.

All registrations for non-taxable trusts in existence on or after 6 October 2020 now need to be registered.

Non-taxable trusts created after 1 September 2022 must register within 90 days.

Any changes made to the trust, such as death of settlor, or change of trustees and/or beneficiaries, must be recorded on the register within 90 days of when the event occurred.
We are required to collect proof of the registration of the trust on an ongoing basis when certain “events” occur, such as:
- Applications for new business
- When additional premiums are paid to existing policies
- Requests for maturities/surrender/withdrawals
- Payment of funds to beneficiaries
- Changes of trustees.
- Appointments and assignments to beneficiaries
- Change of beneficiaries
Failure to provide the information requested will delay any application or trustee requests.

What if I have a Canada Life International Assurance (Ireland) DAC (CLIAI) policy?

Where a policy is issued in trust from CLIAI, there is dual registration requirement to not only register the trust with TRS but also the Central Register of Beneficial Ownership of Trusts (CRBOT).

However, for most advisers and trustees it is not currently possible to register trusts on the Irish Revenue website, as the Revenue are not issuing unique identification numbers (known as TAINs) to applicants who are non-Irish residents.

The Irish Revenue are working to simplify the CRBOT registration process for non-Irish residents, and in the meantime penalties will not be levied for trustees who don’t complete a CRBOT registration.

Where can I find further information on CRBOT?

For further information you can visit the CRBOT website https://www.revenue.ie/en/crbot/index.aspx

TRS information request

To be kept up to date with any changes to the Trust Registration Service or new information relating to registering your trust, please complete the form below:

Next steps

Trustee duties and TRS

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Trust Register and Trustees’ Obligations

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