Published: 1st February 2023
The trust registration service was introduced to provide HMRC with details about trust assets and beneficiaries – to help prevent money laundering. Initially, only trusts with a tax liability were required to register – but the regulations have since been extended to most trusts. New HMRC guidance confirms that a fixed penalty of £5,000 applies if a trustee fails to register a trust, or maintain the trust register. However, the guidance also states that, as this is a new requirement, penalties won’t be charged if the failure was not deliberate, and the register is updated within a time limit set by HMRC.
The deadline to register the majority of trusts was 1 September 2022. You can check whether your arrangement needs to be registered here.