HMRC has launched new reporting obligations that require all UK trusts, and non-UK trusts with potential UK tax liabilities, to be registered. The relevant taxes are income tax, CGT (including non-resident CGT), SDLT and SDRT. The service is presently only available to individual trustees, with agents to be given access later in 2017.
Pension scheme trustees subject to the new rules must ensure that they register the trust and the required information with HMRC and update the trust register annually.
Trustees will need to provide certain details about the trust including:
- The trust name, when it was established, where it is resident and administered
- Details of the trust’s assets (including a statement of accounts and valuations for each category of trust assets)
- The name of any paid legal, financial or tax advisers
- The identity of the settlor, trustees, beneficiaries (including potential beneficiaries) and any protectors i.e. persons exercising effective control over the trust
The HMRC reporting deadlines are:
- 31 January 2018 for trusts “set up” or starting to make income or chargeable gains prior to 6 April 2016
- 5 October 2017 for trusts “set up” or starting to make income or chargeable gains between 6 April 2016 and 5 April 2017
- 5 October 2018 for trusts “set up” or starting to make income or chargeable gains between 6 April 2017 and 5 April 2018
Pension scheme trustees falling within scope of the new HMRC requirements should act promptly as those who fail to comply may face both fines and conviction of criminal offences.