Q&As

Do type C trusts in the Money Laundering and Terrorist Financing (Amendment) (EU Exit) Regulations 2020, SI 2020/991, reg 45ZA(1)(c) only relate to interests in UK land acquired on or after 6 October 2020? Will a Jersey Property Unit Trust holding UK real estate but with no UK tax liability have to register only where the UK real estate was acquired from 6 October 2020 or will it have to comply with the registration provisions on a retrospective basis?

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Published on LexisPSL on 14/04/2021

The following Private Client Q&A provides comprehensive and up to date legal information covering:

  • Do type C trusts in the Money Laundering and Terrorist Financing (Amendment) (EU Exit) Regulations 2020, SI 2020/991, reg 45ZA(1)(c) only relate to interests in UK land acquired on or after 6 October 2020? Will a Jersey Property Unit Trust holding UK real estate but with no UK tax liability have to register only where the UK real estate was acquired from 6 October 2020 or will it have to comply with the registration provisions on a retrospective basis?
  • Rules of statutory interpretation
  • Presumption against retrospective legislation

The Money Laundering and Terrorist Financing (Amendment) (EU Exit) Regulations 2020 (MLR 2020), SI 2020/991, reg 45ZA(1)(c) provides:

'(c) a “type C trust” is a non-UK trust which is an express trust and is not a trust listed in Schedule 3A, where none of the trustees are resident in the United Kingdom and those trustees, in their capacity as such, acquire an interest in land in the United Kingdom.'

MLR 2020, SI 2020/991, reg 45ZA(5)(a) provides that the information required must be provided by 10 March 2022 'in the case of a trust which first falls within paragraph 1(a), (b) or (c) before 9 February 2022'.

We have been unable to find any authority on the issue of whether the requirement to register is prospective or retrospective. However, it is arguable that the requirement is prospective, so that only non-UK trusts which acquire land on or after 6 October 2020 will have to register. This view is based on the following:

  1. rules of statutory interpretation

  2. presumption against retrospective legislation

Rules of statutory interpretation

The starting point for the courts in interpreting a statute is the literal rule. The li

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