The role of a trustee is one of stewardship and responsibility, balancing legal obligations with safeguarding beneficiaries’ interests. Among these duties is a critical requirement: ensuring compliance with the Trust Registration Service (TRS). Introduced as part of the UK’s implementation of anti-money laundering regulations, TRS is the central register of beneficial ownership for trusts. Non-compliance can lead to financial penalties and reputational risks.
This blog highlights when registration is required, key deadlines, and potential consequences for failing to meet obligations.
What Trusts must be registered?
Trustees must register with HMRC’s TRS if the trust is:
- Liable for UK tax, including Income Tax, Capital Gains Tax, Inheritance Tax, Stamp Duty Land Tax, or Stamp Duty Reserve Tax.
- A non-taxable trust created after 6 October 2020, unless excluded (e.g. charitable trusts, will trusts wound up within two years, pension schemes, or certain commercial arrangements).
Examples of registrable trusts:
- Bare trusts holding property or bank accounts for minors
- Family trusts with discretionary powers
- Trusts established in estate planning
Timeframes and Deadlines
Timely compliance is essential. Key registration deadlines include:
| Trust Type | Registration Deadline |
|
Taxable trust (existing pre-2020)
|
By 31 January following tax year of liability |
|
Non-taxable trust (created on or after 6 Oct 2020)
|
Within 90 days of creation or becoming registrable |
|
Change of trust details
|
Within 90 days of change |
Trustees should note that even if a trust is not currently taxable, it may still require registration due to changes in circumstances or legislation.
Penalties for Non-Compliance
Failing to register a trust can result in:
- Financial penalties – HMRC can issue fines for late registration or failure to update details.
- Investigations – Trusts not properly registered may come under scrutiny under anti-money laundering checks.
- Inaccessibility – Unregistered trusts may face delays in property transactions, investment management, or legal settlements.
HMRC typically applies a proportionate approach to penalties, with more leniency shown where trustees act in good faith. However, wilful or prolonged non-compliance can lead to escalating consequences.
Trustee Responsibilities
Trustees are jointly responsible for:
- Determining if registration is required
- Gathering and submitting accurate information
- Maintaining records and updating changes
- Ensuring ongoing compliance with TRS obligations
Legal advice is highly recommended, especially where trusts are complex or family arrangements are involved.
Final Thoughts: Compliance Builds Trust
Proper trust registration isn’t just about following rules—it’s about demonstrating transparency, accountability, and readiness to adapt to evolving legal standards. Trustees who understand and act on their TRS responsibilities help protect both their position and the interests of beneficiaries.
If you are unsure whether your trust needs to be registered, or would like assistance with the process, our solicitors are here to help. We offer clear guidance, practical support, and peace of mind in navigating your duties.
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Amanda Voakes is a Partner in our expert Wills and Probate team, advising on Inheritance Tax planning, Wills, administration of estates, grants of Probate, grants of Letters of Administration, Powers of Attorney, administration of affairs, and residential care fee planning/protection of assets.
To discuss how we can help you, please contact Amanda or another member of the team on 0808 258 0461 or via our online enquiry form.
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