We explain, in plain English, what is expected of those who manage trusts and why compliance matters even when a trust seems quiet.
Since June 2017, the Trust Registration Service (TRS) increased transparency of beneficial ownership under anti-money laundering rules. Trustees must also consider international reporting such as FATCA and CRS where there are US or overseas settlors or beneficiaries.
Failing to meet UK money laundering requirements can amount to a criminal offence. That personal nature of responsibility means missed deadlines or incorrect details can have real consequences for those administering a family trust.
We will set out when to register, what details to provide and how tax reporting and record-keeping connect. Real-life family examples — such as a discretionary trust holding investments or a trust owning UK property — will show practical, compliant steps.
For clear guidance on duties and governance see the essential trustee guide and our practical note on registration registering a trust as a trustee. We also explain when professional advice is a sensible, allowable trust expense.
Key Takeaways
- Registration via the TRS matters even for ‘quiet’ trusts.
- Trustees carry personal responsibility for accurate reporting.
- International rules like FATCA/CRS can still apply.
- Good record-keeping reduces risk and simplifies tax returns.
- Professional advice is often a legitimate trust expense and sensible protection.
When HMRC trustee obligations apply to your trust
Whether a trust must register often turns on where it pays tax or holds land. We start with the simple test: is the trust UK resident or does it have a UK tax charge?
Who must register
- UK resident trusts and non-UK trusts with UK income, gains, IHT, or property taxes.
- All UK express trusts unless a clear exemption applies.
- Non-UK express trusts that acquire UK land or enter certain UK business relationships since 6 Oct 2020.
Keep exemptions under review. A trust may be exempt today and in scope tomorrow if assets, beneficiaries or purpose change.
“Start with the questions: Do we have UK tax? Do we hold UK land? Are any settlors or beneficiaries US or in CRS countries?”
Other reporting regimes
Alongside the register you should check FATCA for US connections and CRS for other overseas residents. For practical guidance on completing tax duties see our note on trustees’ tax responsibilities.
| Trigger | Who it affects | Result |
|---|---|---|
| UK residency | UK resident trusts | Must register on the trust registration service |
| UK tax liability | Any non-UK trust with UK tax | Must register and report |
| UK land acquired after 6 Oct 2020 | Non-UK express trusts | Registration required |
| US person connected | Any trust with US settlor/beneficiary | May also need FATCA reporting |
How to register a trust and keep the Trust Registration Service up to date
Getting a trust on the register is a straightforward process when you know what information to gather.
What to supply. You must give the trust name, date of creation, country of tax residence and place of administration. Add trustees’ contact details, a summary of trust assets and the people with beneficial interests. List settlors, trustees and beneficiaries and anyone who can exercise control.
Who counts as a beneficial owner? Those who set up the trust, those entitled to benefit and anyone who can influence decisions. Also include controlling interests in other countries where relevant.
Step-by-step registration
- Create an online account as trustees or ask an agent to register for you.
- Gather the information and upload accurate details.
- Submit the registration and keep a record of the reference.
| Action | Deadline | Why it matters |
|---|---|---|
| Initial registration | Within 90 days of creation | Sets the official record for the year and avoids penalties |
| Update changes | Within 90 days of change | Keeps details correct for tax returns and checks |
| Annual declaration | By 31 January after tax year end | Confirms the register matches the tax return |
Access to the service is limited to authorities. Others may gain access if they show a legitimate interest in countering money laundering or similar risks.
For a practical walkthrough of the registration process see our step-by-step advice.
Meeting ongoing HMRC reporting and tax obligations as a trustee
Keeping tax and reporting up to date protects the trust and those it supports.
When a Notice to File arrives, we must act. Even if the trust had no income or gains, a tax return is usually required. HMRC may not tell your adviser, so prompt filing avoids penalties and queries.
Responding to a Notice to File
File the return by the deadline. If there really is nothing to report, submit a nil return and keep proof. This simple step closes the year and shows you have complied.
Income tax reporting
Track all income, allowable expenses and payments made to beneficiaries. Record who received income and when.
Why this matters: distributions affect which tax rates apply and who must report the income.
Capital gains and property disposals
Any disposal of trust assets must be reviewed for gains. For UK residential property, report and pay the tax within 30 days of completion.
Keep sale papers, invoices and valuation evidence to support the calculation.
Inheritance tax touchpoints
Expect reporting at setup, at the ten‑year anniversary for many discretionary trusts, and on exits or appointments. Record the values used and reasons for charges.
Record-keeping checklist
- Annual trust accounts and bank statements.
- Minutes, written resolutions and deeds of appointment for distributions.
- Receipts, invoices and valuations for income and capital events.
Protecting beneficiaries and managing risk
We must act impartially between beneficiaries and review investments regularly. Ensure property is insured in the names of the trustees and any occupation by a beneficiary is authorised and documented.
Non‑compliance and when to seek advice
Deliberate failures can lead to significant penalties and, in some money laundering cases, criminal exposure. Seek professional advice for complex tax, overseas links or property sales.
Reasonable administration and tax advice costs can usually be paid from the trust fund. For practical agent guidance see registering a trust as an agent.
| Task | What to keep | Typical deadline |
|---|---|---|
| Respond to Notice to File | Nil or full tax return evidence | As stated on notice |
| Income reporting | Income logs, expenses, beneficiary payments | Tax return deadlines |
| Property disposal | Completion statement, valuations, sale contract | 30 days for UK residential property |
| Inheritance tax events | Valuations, charge computations, appointment deeds | On chargeable events and ten‑year dates |
Conclusion
Treating registration and reporting as an annual habit keeps families and assets protected.
We recommend three quick checks. First, confirm the trust is on the trust registration service and that the details are accurate.
Second, diarise updates within 90 days and the annual declaration by 31 January where tax applies. Keep records of income, investment decisions and distributions to beneficiaries.
Third, watch cross‑border links. FATCA/CRS rules can become relevant if a beneficiary moves overseas. Trustees with investment portfolios may need an LEI to transact with EU services.
If you are unsure, take early advice. Acting now costs less than fixing a problem later and helps trustees meet their legal duties with confidence.