Q&As

Where there is a UK Will or lifetime trust that has (a) no tax (income tax, inheritance tax (IHT) or capital gains tax (CGT)) consequences, (b) no US connections, (c) UK resident trustees and beneficiaries, and (d) UK situated trust property, including a share portfolio with discretionary management, what (if anything) are the obligations of the trust in relation to the Trust Registration Service (TRS), the Foreign Account Tax Compliance Act (FATCA) and the Common Reporting Standard (CRS)?

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Published on LexisPSL on 25/09/2018

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

  • Where there is a UK Will or lifetime trust that has (a) no tax (income tax, inheritance tax (IHT) or capital gains tax (CGT)) consequences, (b) no US connections, (c) UK resident trustees and beneficiaries, and (d) UK situated trust property, including a share portfolio with discretionary management, what (if anything) are the obligations of the trust in relation to the Trust Registration Service (TRS), the Foreign Account Tax Compliance Act (FATCA) and the Common Reporting Standard (CRS)?
  • Trust Registration Service
  • Foreign Account Tax Compliance Act and Common Reporting Standard

Where there is a UK Will or lifetime trust that has (a) no tax (income tax, inheritance tax (IHT) or capital gains tax (CGT)) consequences, (b) no US connections, (c) UK resident trustees and beneficiaries, and (d) UK situated trust property, including a share portfolio with discretionary management, what (if anything) are the obligations of the trust in relation to the Trust Registration Service (TRS), the Foreign Account Tax Compliance Act (FATCA) and the Common Reporting Standard (CRS)?

Trust Registration Service

Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLR 2017), SI 2017/692, Pt 5 applies to UK corporate bodies and ‘relevant trusts’ and deals with the requirements relating to beneficial ownership information which are separate from the money laundering supervision obligations also contained in MLR 2017.

In order for trustees of taxable relevant trusts to disclose the required beneficial ownership information to HMRC, any trust which is a taxable relevant trust for the purposes of MLR 2017, SI 2017/692, reg 45(14) is required to be registered with HMRC via the online Trust Registration Service (TRS).

A UK trust, which is an express trust, is included in the definition of ‘relevant trust’ within MLR 2017, SI 2017/692, reg 42(2)(b).

Under MLR 2017, SI 2017/692, reg 45(14), a ‘taxable relevant trust’ is a relevant trust in any year in which the trustees are liable

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