The Fifth Money Laundering Directive (5MLD) was been implemented in the UK on 6 October 2020. This means that all UK express trusts, both taxable and non-taxable, now need to be registered in the Trust Registration Service (TRS) unless they are specifically excluded.
Non-UK trusts must also be registered in the TRS if the trust:
- Acquires land or property in the UK; or
- Has at least one trustee resident in the UK and enters into a business relationship in the UK.
The limited exclusions to the requirement to register non-taxable trusts are set out in the Trust Registration Service Manual (TRSM23000).
The TRS opened for registration of non-taxable trusts on 1 September 2021.
Where a non-taxable express trust is not excluded it must be registered in the TRS by the following deadlines:
- Trusts in existence on or after 6 October 2020 – register by 1 September 2022.
- Trusts created after 1 September 2022 – register within 90 days of creation.
When the trust’s circumstances or details are changed, those changes must be amended in the TRS within 90 days of the change.
Written by the Tax Advice Network