In our March 2008 briefing note we reported that, in February 2008, HM Revenue and Customs (HMRC) had introduced new registration requirements for trustees “acting by way of business” following the coming into force of the Money Laundering Regulations 2007 on 15 December 2007.
The original deadline for trustees to register with HMRC as a Trust or Company Service Provider (TCSP) was 1 April 2008. As reported in our May 2008 Update, this deadline was then extended by HMRC to 31 May 2008.
Following an avalanche of requests from advisers for clarification of HMRC’s original guidance on which entities should register as TCSPs, HMRC again extended the deadline for registration to a minimum of 4 weeks from the date on which HMRC published revised guidance.
This revised guidance has now been published and clarifies that sole practitioners and firms whose provision of professional trustee services is limited to occupational pension schemes and employee share schemes, which HMRC considers low risk, will not be considered TCSPs and therefore will not be required to register.
This means that the vast majority of pension scheme trustees will not need to register for the purposes of money laundering compliance.
HMRC is due to contact any trustees who have already applied to register, and who do not need to do so, by 19 August 2008. Any fees already paid to HMRC for registration by trustees who need not comply with the money laundering registration requirements will be refunded.
View the updated guidance.
View our March 2008 briefing note.
View our May 2008 update.