UK Trust Registration Service: A Complete Guide for Trustees

The Trust Registration Service (TRS) was launched in 2017 to implement the EU's Fourth Anti-Money Laundering Directive. Following the Fifth Directive and post-Brexit domestic legislation, the UK dramatically expanded the TRS in September 2022. Trustees who fail to register face financial penalties, and the regime now catches a far wider range of arrangements than many advisers initially expected.

This guide explains the current obligations in plain English. Rules in this area continue to develop, and trustees should always obtain professional advice specific to their circumstances before acting.

Background: Why the TRS Exists

The TRS is part of the UK's commitment to beneficial ownership transparency. It sits alongside the Companies House register of persons with significant control and the overseas entities register. Together, these registers allow HMRC and other law enforcement bodies to identify who ultimately benefits from legal structures in the UK.

The TRS is maintained by HMRC. Access to trust information is restricted: it is not a public register in the way that Companies House is. Only those with a "legitimate interest" — broadly, entities carrying out anti-money laundering (AML) checks — can access information about non-taxable trusts. Information about taxable trusts remains available to law enforcement and HMRC for their own purposes.

Which Trusts Must Register?

Taxable Trusts

Any express trust that has UK tax consequences has been required to register since the original 2017 rules. This includes trusts liable to:

• Income tax
• Capital gains tax
• Inheritance tax (IHT)
• Stamp duty land tax (SDLT)
• Stamp duty reserve tax

The registration obligation arises in the tax year during which the liability first arises. For most ongoing trusts this means they should already be registered. Failure to register where a tax consequence has arisen since 2017 is a breach that HMRC can pursue.

Non-Taxable Express Trusts

The expanded TRS brought in from 1 September 2022 requires registration of non-taxable express trusts unless an exemption applies. An "express trust" is one deliberately created by a settlor — oral or written — as opposed to a resulting or constructive trust imposed by operation of law.

This wide definition catches many arrangements that trustees may not have considered registrable, including:

• Discretionary trusts holding investment portfolios even where no immediate tax arises
• Life assurance trusts (where the policy has not yet paid out)
• Bare trusts set up for minor children or grandchildren
• Pilot trusts with nominal assets
• Trusts holding property where the beneficial interests differ from the legal title

Exemptions from the Non-Taxable Trust Requirement

Several categories of non-taxable trust are exempt:

• Statutory trusts: trusts created by statute rather than deliberately, such as intestacy trusts or co-ownership of jointly held property.
• Pension trusts: registered pension schemes regulated by The Pensions Regulator.
• Charitable trusts: trusts registered with the Charity Commission (or equivalent).
• Life policies paying out only on death: trusts holding a life assurance policy that will only pay out on death and has no investment component (a "pure protection" policy). Note: investment bonds held in trust do not meet this test.
• Trusts for bereaved minors and 18-to-25 trusts: established under a will or intestacy and meeting the relevant IHTA 1984 requirements.
• Trusts holding assets for fewer than two years: a limited exemption for trusts that come into existence and are fully wound up within two years. This is narrowly construed.
• Financial or commercial trusts: certain trusts arising in a commercial context, such as solicitor client accounts or escrow arrangements.

Where you are uncertain whether an exemption applies, the default position should be to register. HMRC has stated it will take a practical approach to genuine uncertainty, but the penalties for non-registration are real.

Non-EEA Trusts with UK Assets or UK Tax Consequences

The TRS applies not only to UK-resident trusts but also to non-UK trusts that either:

1. Have a UK-resident trustee, or
2. Acquire "a beneficial interest in UK land" (registrable land), or
3. Enter into a business relationship with an obliged entity in the UK (such as opening a UK bank account or instructing a UK solicitor), or
4. Acquire UK assets other than land and have UK tax consequences as a result.

This means offshore trusts — including those established in Jersey, Guernsey, the Isle of Man, Cayman Islands, or elsewhere — may be required to register with HMRC if they hold UK real estate, UK listed securities, or maintain a UK bank account. Trustees and their advisers should audit offshore trust portfolios for UK nexus.

The registration of an offshore trust does not of itself create a UK tax liability. It is a reporting obligation only. However, failure to register can alert HMRC to a potential compliance issue, and HMRC may use TRS data as a starting point for enquiries.

Deadlines and the Registration Process

New Trusts

For new trusts created on or after 1 September 2022, the deadline to register is 90 days from the date of creation, or by 1 September 2022 if the trust existed before that date and had not previously registered.

For taxable trusts, the deadline is the later of 90 days from the trust becoming liable to tax or 31 January following the end of the tax year in which the liability arose.

Updates to Existing Registrations

Trustees must update the TRS within 90 days of any change in registrable information. Changes include:

• A new trustee, settlor, or beneficiary joining
• A change of trustee address
• Material changes to trust assets
• The addition of a new class of beneficiary

How to Register

Registration is completed online via the Government Gateway. Trusts must have a Government Gateway account. The nominated "lead trustee" registers on behalf of all trustees.

The information required includes the trust name, date of creation, type of trust, details of settlors, trustees, and (for discretionary trusts) protectors and classes of beneficiaries. For taxable trusts, a Unique Taxpayer Reference (UTR) is also required.

Beneficial Owner Disclosure: What Information Is Submitted?

The TRS requires disclosure of the following "beneficial owners":

• Settlors: the person(s) who created the trust. For a deceased settlor, their name and date of death.
• Trustees: all current trustees, including corporate trustees.
• Beneficiaries: for fixed trusts, the named beneficiaries. For discretionary trusts, the class of potential beneficiaries rather than named individuals (though named beneficiaries who are certain to benefit must be included).
• Protectors: any person holding power to add or remove trustees or beneficiaries.
• Any other person with control: any individual exercising effective control over the trust.

For individuals, the required information is: full name, date of birth, national insurance number (or, for non-UK individuals, passport number and country of issue), and country of residence.

For corporate trustees, company name, registered number, and registered address are required.

HMRC Penalties

HMRC has published its penalty approach:

• First failure to register: a fixed penalty of £100.
• Second failure: £200.
• Third or subsequent failure: the higher of £300 or 5% of the tax liability relating to the trust.
• Deliberate failure: the higher of £3,000 or 5% of the liability.

For non-taxable trusts where no tax liability exists, the penalty for failure to register is limited to the fixed penalty regime above. However, HMRC has signalled it will take a more lenient approach during the initial phase of the expanded regime where trustees can demonstrate a genuine attempt to comply.

TRS and GDPR: Data Subject Access Requests

The TRS data is personal data for GDPR purposes. Beneficiaries and other data subjects named on the register have, in principle, rights to access their own data under the UK GDPR. However, HMRC can restrict access where disclosure would prejudice a law enforcement investigation.

Trustees should be aware that beneficiaries may become aware of their interest in a trust through a GDPR access request directed at HMRC. This is particularly relevant for discretionary trusts where beneficiaries may not have been told of their inclusion in the class. Trustees should review their approach to beneficiary communication in light of this.

Practical Steps for Trustees

1. Audit all trust arrangements: identify every trust in which you act as trustee, including any bare trusts, nominee arrangements, and offshore trusts with UK nexus.
2. Check each trust against the exemptions: do not assume a trust is exempt — confirm it.
3. Register or update as required: use the Government Gateway and complete the registration accurately.
4. Calendar 90-day update deadlines: put a process in place to flag when beneficial owner information changes.
5. Brief the settlor's executors: if the trust was created by will, ensure the executors understand the registration requirement.
6. Consider AML due diligence: if a third party carries out AML checks on the trust, ensure TRS registration details are consistent with the information held by banks, brokers, and other obliged entities.

How Global Investments Can Help

Global Investments works with trustees, executors, and private clients across the UK and internationally to ensure trust structures are properly administered and compliant. Our team can assist with reviewing whether your trusts fall within the TRS regime, preparing the information required for registration, and advising on beneficial ownership disclosure obligations.

Where trusts hold international assets or involve non-UK trustees, we coordinate with local legal and tax advisers to ensure a consistent approach across jurisdictions.

We also advise on the broader estate planning context: whether existing trust structures remain fit for purpose in light of the expanded TRS regime and how to integrate compliance with your overall wealth structuring objectives.

Please note that this guide is for general information only and does not constitute legal or tax advice. Rules in this area change frequently, and individual circumstances vary significantly. You should seek professional advice tailored to your situation. The value of investments and income from them can fall as well as rise.