Understanding HMRC Trust Registration is crucial for ensuring compliance with UK tax laws and anti-money laundering regulations. Trusts that fall under HMRC’s scope must be registered within specific deadlines to avoid legal and financial penalties.
Whether the trust is taxable or not, failing to register when required could have significant consequences. This guide will walk you through who needs to register, how to do it, what it costs, and the responsibilities that follow.
What is HMRC Trust Registration and Why is it Required?
HMRC Trust Registration refers to the legal process of recording the details of a trust with the UK’s Trust Registration Service (TRS). This is a government-mandated system that was introduced to improve transparency and align with anti-money laundering regulations.
All express trusts, whether they incur tax liabilities or not, may be required to register under specific rules. The goal is to help HMRC monitor the ownership of assets held in trusts, particularly those that may be used for financial crime or tax evasion.
- Ensuring legal compliance under UK trust law
- Filing self-assessment tax returns
- Obtaining a Unique Taxpayer Reference (UTR)
If your trust is taxable or falls under mandatory registration rules, it must be recorded in the TRS even if you are claiming tax relief.
Who is Legally Required to Register a Trust with HMRC?
Certain categories of trusts are legally obligated to register with HMRC. These obligations apply whether the trust is liable for tax or not.
You must register if:
- The trust becomes liable for taxes such as:
- Income Tax
- Capital Gains Tax
- Inheritance Tax
- Stamp Duty Land Tax
- Stamp Duty Reserve Tax
- Land Transaction Tax (Wales)
- Land and Buildings Transaction Tax (Scotland)
- The trust is an express UK trust, unless specifically excluded
- The trust is non-UK but:
- Acquires land or property in the UK
- Has at least one UK-resident trustee and engages in a UK business relationship
Even if no tax is due, the trust must register if:
- A UTR is needed
- It is required to comply with anti-money laundering regulations
Excluded trusts under Schedule 3A only need to register with HMRC if a relevant UK tax liability arises during the lifetime of the trust.
When Should You Register a Trust?
Timely registration is crucial. HMRC has set various deadlines based on when the trust was created and its tax status.
| Trust Type | Registration Deadline |
| Non-taxable trust (created before 6 Oct 2020) | By 1 Sep 2022 |
| Non-taxable trust (created after 6 Oct 2020) | Within 90 days of creation or tax liability |
| Taxable trust (created after 6 Apr 2021) | Within 90 days of becoming liable for tax |
| Taxable trust (created before 6 Apr 2021) | By 5 Oct or 31 Jan of the next tax year depending on tax |
Missing these deadlines may result in fines of up to £5,000 and compliance scrutiny from HMRC.
How to Register a Trust with HMRC?
Trusts must be registered using the Trust Registration Service (TRS), a secure, online platform provided by HMRC. This service is mandatory for most UK and relevant non-UK trusts that are required to comply with tax laws or anti-money laundering regulations.
Here’s how to register:
- Create an Organisation Government Gateway account
- Select ‘Organisation’ (not ‘Individual’) when creating the account
- Each trust needs its own Government Gateway ID
- Log in to the TRS portal
- Access the TRS via the GOV.UK website using your Government Gateway credentials
- Agents can register on behalf of trustees with their Agent Services Account
- Submit all required trust details
- Ensure accuracy and completeness of all data fields
- Provide details based on the trust deed and supporting documents
You’ll need:
- Trust name and creation date
- Express trust status (yes or no)
- Details of UK land or property, if acquired
- Business relationships in the UK, for non-UK trusts
After submission:
- A Unique Taxpayer Reference (UTR) is issued for taxable trusts
- A Unique Reference Number (URN) is issued for non-taxable trusts
- You can download a proof of registration document from the TRS portal
Maintaining this information is essential, especially when starting new business relationships or fulfilling HMRC’s annual declaration requirements.
What Information is Required?
When registering a trust with HMRC, trustees must provide key details about the trust, its parties, and its assets. The process requires thorough and accurate information to ensure compliance.
- Trust Details: Name, type, creation date
- Lead Trustee: Name, address, contact details, nationality, NI or passport info
- Settlors: Names, dates of birth/death, residency
- Beneficiaries:
- Named or class-based
- Mental capacity details
- Other Assets:
- Properties
- Shares
- Business interests
- Cash and valuables
Keeping this information up to date is essential, as HMRC requires trustees to report any changes promptly to maintain the accuracy of the Trust Registration Service.
How Much Does it Cost to Register a Trust with HMRC?
Registering a trust on HMRC’s online TRS portal is completely free of charge. However, if you choose to hire a solicitor or tax advisor, you may incur professional fees.
- DIY Registration:
- Free using the GOV.UK portal
- Best for simple trusts with clear documentation
- Agent-Assisted Registration:
- Costs vary (£100–£500+)
- Recommended for complex trusts or high-value assets
While TRS itself does not charge a fee, the cost of compliance can rise depending on legal and administrative complexity.
What Types of Trusts Are Exempt from Registration?
While most express trusts in the UK must register with HMRC, several types are legally excluded, unless they become liable to pay UK tax.
These exemptions exist to avoid unnecessary administrative burdens on certain low-risk or special-purpose trusts.
These Schedule 3A trusts do not need to register unless they incur a tax liability:
| Trust Type | Exemption Condition |
| Pension scheme trusts | Must be UK-registered |
| Life insurance trusts | Payout only on death/illness |
| Charitable trusts | Must be UK registered or exempt |
| Pilot trusts | Set up before 6 Oct 2020 and under £100 |
| Will trusts | Closed within 2 years of death |
| Co-ownership trusts | Holds jointly owned property as tenants in common |
| Financial/commercial trusts | Client money and securities in business |
While these exemptions apply initially, trustees must ensure that if the trust later incurs a tax liability, it is registered on the HMRC Trust Registration Service without delay.
How Does Trust Registration Impact Tax Reporting and Inheritance Tax?
Registering your trust with HMRC ensures it is properly recorded in tax systems and enables accurate reporting for all relevant taxes. It creates a legal identity for the trust, allowing for the assignment of a Unique Taxpayer Reference (UTR) for taxable trusts.
Here’s how registration connects with specific tax obligations:
| Tax Type | Impact of Registration |
| Income Tax | Required for filing trust income returns (e.g. rental, interest) |
| Capital Gains Tax | Must be reported on asset sales or disposals |
| Inheritance Tax | Required during lifetime transfers or on death |
| Stamp Duty | Applied when trusts acquire property or shares |
Trustees are also responsible for reporting changes in trust assets, income, or structure annually. Failure to comply may result in delays, penalties, or loss of tax relief.
What Happens If You Don’t Register a Trust with HMRC?
Failing to register a trust within HMRC’s required timeframes is a legal offence and may attract significant consequences for trustees. Compliance is not optional and failure to act responsibly could risk financial penalties and reputational harm.
Penalties for Non-Compliance
HMRC may issue fines of up to £5,000 for each failure to register or update information. This includes ignoring deadline requirements and failing to keep the Trust Registration Service (TRS) updated.
Impact on Tax Filing and Relief
Unregistered trusts may be ineligible to receive a Unique Taxpayer Reference (UTR), preventing tax filings. Without registration, you also cannot claim tax reliefs or exemptions applicable to the trust.
Risk of Investigation or Legal Action
Failure to register raises suspicion with HMRC, especially for trusts dealing with high-value assets or cross-border transactions. This can trigger tax investigations or further scrutiny under anti-money laundering laws.
What Are a Trustee’s Responsibilities After Registration?
Once the trust is registered, your responsibilities as a trustee do not end. The law requires trustees to maintain the trust’s record, update it with any changes, and meet annual declaration requirements to stay compliant with HMRC regulations.
Post-registration responsibilities include:
- Keeping all trust information current on the TRS
- Updating details within 90 days of:
- Adding or removing trustees
- Changing beneficiaries
- Altering the trust’s structure or assets
- Submitting an annual declaration confirming accuracy
- Sharing proof of registration with relevant organisations (e.g. banks, legal entities) when requested
- Acting as the main contact with HMRC if you are the lead trustee
Being proactive helps avoid penalties and ensures the trust remains legally valid.
How Often Must a Trust Be Updated in the TRS?
The Trust Registration Service (TRS) must be updated every year via an annual declaration.
Additionally, whenever there is a significant change, like adding a new trustee or beneficiary, or acquiring/selling a property, the update must be made within 90 days. Failing to report such changes may lead to compliance issues and fines.
What Happens If a Trustee Fails to Update Trust Information?
Trustees who fail to keep the TRS up to date are in breach of their legal duties and could face:
- Monetary penalties issued by HMRC
- Delays in processing trust-related tax matters
- Increased risk of audit or scrutiny from authorities
Failing to report changes could invalidate certain trust transactions or delay necessary legal processes. Trustees must treat updates as a priority to ensure ongoing compliance and maintain trust and integrity.
Conclusion
HMRC Trust Registration is not just a regulatory formality; it is a legal obligation for many trustees. Understanding whether your trust qualifies for mandatory registration, meeting deadlines, and submitting accurate information are essential steps in staying compliant.
Trustees should take proactive steps to review the trust’s status, gather the correct documentation, and register promptly using the TRS. When in doubt, seeking expert advice can ensure everything is done correctly and legally.
Frequently Asked Questions
What is the role of the lead trustee during registration?
The lead trustee is the main contact with HMRC and is responsible for submitting trust information and updates on behalf of all trustees.
Can a trust be deregistered from the HMRC TRS?
Yes, a trust can be removed from the TRS if it is closed, wound up, or no longer meets registration requirements.
Is there a fee for registering a trust with HMRC?
There is no fee to register directly with HMRC, but professional advisors may charge for assistance.
Do bare trusts need to be registered?
Most bare trusts are exempt unless they are liable for tax or meet specific conditions requiring registration.
Can a professional advisor register a trust on behalf of a trustee?
Yes, a solicitor or tax agent can register a trust on the trustee’s behalf using an agent account.
How does Brexit impact UK trust registration rules?
Brexit has had little impact on domestic trust laws, though international trust relationships may face new scrutiny.
Is trust registration required for property held in trust?
Yes, if the trust owns property and is taxable or falls under mandatory registration rules, it must be registered.
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- Employer Bulletin HMRC August 2025: PAYE, P11D, Employment Rights & Tax Changes!
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