Updates to the HMRC Trust Registration Service

As of 1 March, there have been several updates and changes to the Trust Registration Service (TRS) submission process, we will outline the most relevant ones in this article. Deadlines: Non-taxable Trusts (registerable express Trusts) are required to be registered by 1 September 2022 or within 90 days from the date of creation. Changes to said Trusts must also be recorded within 90 days of the Trustees becoming aware of the changes. If the Trust is signed up to the Solidus 24-month service, we will require the Trustees to inform us of such changes within 14 days in order for […]

Read more

Life Policies in Trust

When it comes to life insurance and estate planning, in order to ease the process of distributing the funds following the death of your client, an insurance policy can be held as an asset in the Trust. This Trust, subject to certain conditions, may be excluded from registration during the lifetime of your client/the person assured (Sch3A(4) of the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017). After your client has passed, the Trust will continue to be excluded from registration provided that the Trust receives the pay-out from the policy. The Trustees will […]

Read more

HMRC have confirmed that Trusts closed since 6th Oct 2020 need to be registered

HMRC’s Trust Registration Service (TRS) started on 1 September 2021 with a deadline of 1 September 2022 for all existing Trusts to be registered. There has been some confusion over whether or not Trusts that have closed or will close before 1 September 2022 need to be registered, i.e. if the Trust closed before the facilities to register it became available. The HMRC have now announced that these Trusts will, in fact, need to be registered and then closed. The HMRC released the following statement: “On 6 October 2020, amendments to the Money Laundering Regulations came into force to require […]

Read more

Happy 10 Year Anniversary!

I appreciate “happy anniversary” might be a bit of a stretch, but I think the point to take away here is this kind of topic, when speaking with your clients, does not need to be as complicated as you think! The 10-year anniversary charge (also known as the periodic charge) very much gives the game away in its name. When a Trust hits its 10th year anniversary, the trustees will need to pay a 6% charge on the assets that exceed the Nil Rate Band allowance (21/22 £325,000).  For example, if a Trust holds £425,000 of assets, on its 10th […]

Read more

What’s the difference?

A common question I have had this week is, “What is the difference between a Solidus Plan and a Beneficiary Protection Plan (BPP) for Married Couples?”. The short answer is that the Solidus Plan is a defined framework which has a higher IHT focus for high-net-worth clients. The popular BPP is for married couples where the key driver is asset protection. On first death Nil Rate Band (NRB) planning and/or life interest planning is popular and is achieved by the creation of a Will Trust for the benefit of the surviving spouse when the client deceases. The NRB or life […]

Read more