The UK's implementation of the EU Fifth Anti-Money Laundering Directive requires the majority of Trusts to be registered with HMRC by September 2022, as opposed to previously when just taxable Trusts had to be registered. This includes existing Trusts (many of which may have run for decades with little or no "professional" interference) and any future Trusts (which must now be registered within 90 days). While there are some exceptions, these are small in number and the new requirement catches a great deal more; declaration of trusts where parents hold property for their children, and common "protection" trusts in Wills whereby a spouse has a life interest in a property, or a nil rate band trust is set up. It will be the duty of the Trustees to register these Trusts, and while we, as a firm, are looking into how we can notify existing clients of their obligations, there will be many we can not contact or no longer have contact details for. Everyone should therefore be encouraged to question their own circumstances and whether there is anything that may be caught by these requirements. Ignorance will be no excuse to HMRC. If you have any concerns or want to check if something may be caught please contact us.
Some arrangements popular among parents and grandparents, such as bare trusts and bank accounts held for minors, are not exempt. This means they need to register those trusts