The original requirement for certain trusts to register on the Trust Registration Service was introduced in June 2017 as part of the UK’s implementation of the EU’s 4th Anti-Money Laundering Directive. This provided greater transparency surrounding the assets and individuals involved in such structures. 

When implemented the requirements applied to all taxable trusts – broadly speaking a trust with a relevant liability to tax (e.g. Income Tax, Capital Gains Tax, SDLT or Inheritance Tax). 

Registration is completed electronically and when registering, trustees are required to provide details of the trust assets, trustees, beneficiaries and other people related to the trust. The trustees also have an ongoing requirement to maintain the Trust register on an annual basis. 

Following implementation of the EU 5th Anti-Money Laundering Directive, new rules were introduced in October 2020 which extend the scope of registration. This means that the majority of trusts are now required to register, regardless of if they have any relevant tax liability. 

Certain trusts are excluded from the registration requirements including the following:

• Bare trusts set up to hold bank accounts for minors
• Charitable trusts
• Co-ownership trusts set up to hold property for two or more people for themselves as tenants in common
• Will trusts provided they only own assets for up to two years following death
• Pilot trusts set up before 6 October 2020 holding no more than £100. 

Registration of existing trusts is now required before 1 September 2022. For new trusts created after this date, registration is required within 90 days.