Mike Gane of Thatcher + Hallam, the local solicitors based in Midsomer Norton, is advising people acting as Trustees or involved in Trusts of forthcoming changes in Trust reporting requirements, which come into force in 2022.

Regulations passed in October 2020 mean that the legal obligation for trustees to comply with HMRC's reporting requirements under the Trust Registration Service has been expanded significantly. Previously, only trusts subject to tax under the 4th Money Laundering Directive were required to comply with the reporting regulations. Under the 5th Money Laundering Directive all UK Trusts (apart from trusts that meet certain exemptions, i.e. Charitable trusts) must be registered irrespective of whether there is a tax liability. This includes bare trusts and Declarations of Trust where the legal and beneficial owners are different, for example if there is co-ownership of property.

Although trustees have until 1st September 2022 to comply, penalties will be imposed for non-compliance. In addition, there will also be time limits for reporting any changes to the trust (for example, appointment or retirement of trustees) to ensure compliance.

The changes outlined above impose an additional administrative burden on trustees and their professional advisors and Thatcher + Hallam are recommending all trustees obtain advice as soon as possible to ensure they are clear on their responsibilities following these changes.

If any trustees have concerns regarding their obligations, please contact the Wills and Probate Team at Thatcher + Hallam on 01761 4146464 or by clicking HERE: the Thatcher and Hallam site