Clarification of unit trust exemptions from trust registration - January 2023
In the updated Trust Registration Service Manual, published on 31 January 2023, HMRC have clarified that only UK authorised unit trusts with no UK tax liability benefit from an exemption from trust registration.
Section TRSM10030 of the manual confirms that whilst a UK authorised unit trust (AUT) is not required to register on the TRS (Trust Registration Service) unless it has a UK tax liability, there are no specific exclusions for unauthorised unit trusts (UUTs). By implication, there are therefore no specific exclusions for offshore unit trusts either. This means that offshore unit trusts such as Jersey Property Unit Trusts (JPUTs) and Guernsey Property Unit Trusts (GPUTs) are generally within scope to register with the TRS if the trusts are liable to a relevant tax (SDLT or its devolved equivalents being the most likely), or if they directly acquired UK land on or after 6 October 2020.
Extension of registration deadline in 2022
In early 2022, some amendments were made to the trust registration regulations including extending the registration deadline from 10 March 2022 to 1 September 2022.
New trust registration rules – October 2020
New rules were introduced on 6 October 2020, as part of the UK’s implementation of the Fifth Money Laundering Directive (5MLD). This extended the scope of the trust register to all UK and some non-UK trusts that were currently open, whether or not the trust had to pay any tax, but with some specific exclusions. The exclusions at the time included unit trusts (both authorised and unauthorised),
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