In this article:
We'll outline how the Trust Registration Service regulations apply to trustees and advisers – including the latest updates made in April 2023. The article is written based on our current understanding of the rules, but these can change. For the latest information, please go to HMRC website.
Any information on our website, as well as any websites we link to, is only guidance. It should not be taken as legal or financial advice. Aviva does not accept responsibility for any reliance on this information. We recommend you get legal or financial advice when necessary, based on your own circumstances.
What’s the Trust Registration Service?
The Trust Registration Service is an online platform provided by HMRC. It allows trustees to meet their statutory obligations to:
- register their trusts
- update trust details
- declare no changes
- authorise agents
- get proof of registration
- close trusts on the register.
Who should register?
All trustees must register their trust with HMRC, unless it qualifies for an exemption. Registration is needed to make sure the trust is compliant with anti-money laundering regulations. In some cases, registration is needed to get a Unique Taxpayer Reference – like when submitting a self-assessment tax return. Even if a trust is exempt from registration, trustees may still need to register it to meet tax obligations.
The following types of trusts must be registered, even if they have no tax liability.
All UK express trusts
All UK express trusts must register, unless they're specifically excluded under Schedule 3A of the Money Laundering Regulations. You can find a full list of these trusts here on the government website . An express trust is created by a settler – usually in the form of a document like a written deed or declaration of trust.
Express trusts can be created to take effect during the settler’s lifetime, or by will, to take effect on death.Footnote [1]
Non-UK express trusts
Trustees of a non-UK trust with at least one UK resident trustee are required to register if they enter into a business relationship with a UK relevant person.
Non-UK trusts with no UK resident trustees are only required to register if the trustees acquire land or property in the UK or are liable to UK tax.
For more information, please head to the Trust Registration Service Manual.
Which products are affected?
Any trusts that use our products might need to register. If you’re the trustee, you’ll need to work out which ones you need to register. You’ll need to carefully review all the information on the HMRC website before doing so.
| Products | Claim type | What you need to do |
|---|---|---|
| Pension | You don’t need to register any pension schemes held in trust if they’re already registered under the Finance Act 2004. Other types of pensions held in trusts that do need to be registered. | |
| Investment bonds or endowments | These must be registered if they’re held in a trust that was active on or after 6 October 2020. | |
| Life insurance | New business | You don’t need to register the trust if the policy only pays out when someone insured on the policy passes away, has a terminal or critical illness or becomes permanently or temporarily disabled. Or if it only pays out to cover medical costs of someone insured on the policy.
If a policy in a trust doesn’t meet these criteria, or it includes non-insurance assets then it will need to be registered. |
| Life insurance policies – Surrender | The trust will need to be registered with the TRS if we pay-out the surrender value to the trustees. | |
| Life insurance | Claim on death | If someone insured on the policy dies, you won’t need to register the trust for two years. If the trust continues to hold assets after the two-year period, you may need to register. |
| Life insurance | Claims on terminal illness, critical illness or becoming temporarily or permanently disabled | The trust doesn’t need to be registered until one of the ‘events’ listed happens. If we pay out to the trustees after one of these events, then it will need to be registered. |
| Group Life Schemes | Group life schemes under trust do not need to be registered. If someone insured on the policy dies, you won’t need to register the trust for two years. If the trust continues to hold assets after the two-year period, you may need to register. | |
| Corporate and Group Healthcare Trusts | The trust needs to be registered, unless it falls within any of the exemptions. |
HMRC have information on which trusts don’t need to be registered, as well as information about trusts holding life insurance policies.
The registration process
All trusts need to be registered online. There must be a lead trustee chosen to be the lead contact for HMRC, although they can authorise an agent to register the trust on their behalf. You can find more information on the website for registering as a trustee.
Trusts need to be registered:
- within 90 days of the trust being created or becoming liable for tax
- before submitting a tax return if the trust becomes taxable (for example due to income, capital gains or inheritance tax)
- before reporting and paying Capital Gains Tax on a UK residential property – this must be done within 60 days of the sale.
The lead trustee has a responsibility to make sure the registration details are kept up to date. If any information changes, then the details should be updated with the Trust Registration Service within 90 days of the trustees becoming aware of the changes. More information is available on the Trust Registration Service manual.
What happens if a trust isn’t registered?
HMRC may fine trustees that don’t follow the registration rules.
Aviva might ask to see evidence of registration for any relevant products you have with us. This will most likely be:
- when you first put your policy under trust
- when you make changes to the trust
- if we haven’t seen evidence of your registration before.
We can only accept a specific document called proof of registration as evidence. You can download this from HMRC. We won’t be able to access this information for you, you’ll need to provide it. The government website has step-by-step instruction for obtaining proof of registration.