Trusts go digital – new trusts registration service
HMRC have launched a new online service for registering trusts, replacing the current paper form (41G). Trustees and their agents will be able to register and update their records online with the new Trusts Registration Service, which aims to tackle money laundering and tax avoidance but also improve user experience and efficiency.
The online portal is currently available to individuals and is expected to be fully launched to all users by October 2017.
I’m a Trustee, what do I need to do?
All trusts with a UK tax consequence must be registered and trustees will need to update the register each year that the trust generates a UK tax consequence. Also, trustees must ensure and confirm the Trust Register is accurate and up to date. Trusts already registered with HMRC using the 41G (Trust) form will also need to register online and ensure their details are kept up to date in the future. Registration does not apply to trusts that have closed.
The Register will also provide a single point of access for personal representatives and their agents to register complex estates and update their records online, replacing the current paper process for personal representatives to notify changes in their circumstances.
An estate is considered complex if:
- The value of the estate exceeds £2.5 million
- Tax due for the whole of the administration period exceeds £10,000
- The value of assets sold in any tax year for date of deaths up to April 2016 exceeds £250,000 or £500,000 for date of deaths after April 2016
How can Mowbray Woodwards help?
At the moment only lead trustees and personal representatives can use the online service. If you have instructed Mowbray Woodwards to act as a professional trustee on your behalf, we will take the lead with this and will register your trust via the online registry, as soon as we are able to do so.
By October 2017 the online service is expected to be fully operational for all users and our specialist tax and trusts solicitors will be able to use the system for our clients. In the meantime, if you would like some assistance with the online registry we are more than happy to help.
If you have any questions about the new online registration process, your responsibilities as a trustee, or are considering appointing a professional trustee, please call our specialist team on 01225 485700 or email firstname.lastname@example.org