We’ll walk you through what registering a discretionary trust HMRC really means, and why it matters for protecting family assets. This is practical help for trustees who must keep paperwork right and relationships with banks or solicitors smooth.
First, we set expectations. We cover the Trust Registration Service, who usually does the work, and when using an agent can speed things up. Expect clear steps and checklists so you gather the right information before you start.
Then we explain deadlines, what counts as taxable, and the penalties for late or missing registration—up to £5,000. We also show what you get after registration, such as a UTR or unique reference, and how to use proof of registration when starting new business relationships.
For hands-on guidance, see the official page to register a trust as a trustee.
Key Takeaways
- Registering keeps trusts compliant with anti-money laundering rules.
- Most UK express trusts must register unless excluded by Schedule 3A.
- Gather dates, beneficiary details and trustee information up front.
- Penalties apply for late registration or failing to update details.
- You’ll receive a UTR or unique reference within days after registration.
Understanding discretionary trusts and why registration matters
Let’s explain, in simple terms, how these arrangements work and why clear records matter.
What this is: You place assets into a set-up where trustees hold and manage them. Trustees decide who benefits, how much and when. Think of it like a family safe: the trustees hold the key.
How trustee discretion works day to day: Trustees may pay school fees, help with deposits, or withhold funds if a beneficiary faces debt or divorce. These choices are practical and often sensitive.
Key people and roles
- Settlor: the person who sets things up.
- Trustees: legal owners who manage the assets and make decisions.
- Lead trustee: the contact who handles registration and correspondence.
- Beneficiaries: named people or broader classes like future grandchildren.
Why families use these arrangements: They offer control over when money is paid, protect assets from creditors, and can keep matters private compared with probate.
Tax reality: Gifts into this vehicle can trigger IHT rules and may be pulled back into an estate if the settlor dies within 7 years (or 14 in some cases). Many last up to 125 years, though older ones run 80 years.
Do you need to register your trust on the Trust Registration Service?
Deciding whether you must use the Trust Registration Service can be straightforward if you know the common triggers.
Yes — many UK express arrangements must be listed. Most UK express settlements need entry on the register even when no tax is due, unless excluded by Schedule 3A.
When registration is needed despite no tax
Express arrangement means one set up deliberately, usually by deed or will. If that applies, you usually must register with the service.
When an arrangement becomes registerable due to tax
- Tax triggers include Income Tax, Capital Gains Tax, Inheritance Tax, Stamp Duty Land Tax and Stamp Duty Reserve Tax.
- Becoming liable can arise from interest, a property sale, or a lifetime transfer.
Non-UK arrangements with UK links
Foreign settlements must join the register if they acquire UK land or property, or form a UK business relationship such as opening an investment account with a UK provider.
Simple rule: check annually. Registration is about transparency and anti-money‑laundering compliance, even when tax is ultimately reduced by reliefs.
Which trusts are excluded from registration (Schedule 3A)
Many family arrangements are outside the registration rules; Schedule 3A sets out the main exclusions.
In practice, these excluded express trusts do not need entry on the register unless they become liable for UK tax. That change in tax status pulls them back into scope.
Typical excluded arrangements to recognise
- Life insurance written into trust that only pays out on death, serious illness or disability.
- Registered pension scheme trusts and many charitable trusts.
- Will trusts which hold estate assets and are closed within two years of the date of death.
- Co-ownership or tenants in common where people hold property in distinct shares rather than a wider family settlement.
When an excluded trust still needs to be listed
Do not assume safety. If the arrangement starts to receive taxable income, makes a chargeable disposal, or acquires UK land or property, you must register.
“Even excluded setups can re-enter the register if tax or property issues arise.”
| Type | Typical exclusion | Common trigger | Action |
|---|---|---|---|
| Life insurance | Excluded if payout only on death/illness | Payouts outside those events | May need to register |
| Will trusts | Closed within two years of death | Still open after two years | Register trust details |
| Co-ownership | Tenants in common shareholdings | Income from property or sale | Check for registration |
| Pension/Charity | Usually excluded | Receives taxable UK income | May enter register |
Key point: if tax, land or property events occur, review your position promptly. That avoids surprises and possible penalties.
Registering a discretionary trust HMRC deadlines and timing rules
We explain the key deadlines and what triggers them. Deadlines depend on the date the trust was created and on when it first becomes liable for tax. Follow these simple rules to avoid fines.
Non-taxable trusts created on or before 6 October 2020
If the arrangement was created on or before 6 October 2020 and remained non-taxable, trustees had to meet the legacy deadline of 1 September 2022.
Non-taxable trusts created after 6 October 2020 — the 90-day rule
For trusts created after 6 October 2020 that are non-taxable, you must register within 90 days of the trust being created or within 90 days of it becoming liable for tax.
Taxable trusts created on or after 6 April 2021
Taxable trusts formed on or after 6 April 2021 must be entered on the register within 90 days of becoming liable for tax.
Older taxable trusts: the 5 October and 31 January deadlines
For trusts created before 6 April 2021, rules differ by tax year. If a trust is first liable to Income Tax or CGT, register by 5 October after that tax year.
If the trust has been liable before, register by 31 January after the tax year of liability. Other taxes generally follow the 31 January deadline.
How “within 90 days” is triggered
“Becoming liable” usually means the first time the trust receives interest, rent, dividends or makes a chargeable disposal. That date starts your 90-day window.
“Identify the trigger date, count forward, and don’t leave registration to the last week.”
- Timing checklist: confirm the creation date or tax-trigger date.
- Count forward 90 days where that rule applies.
- Note legacy 1 September 2022 obligations if they still apply to older arrangements.
Information you’ll need before you start trust registration
Before you open the online form, gather the key facts so the process runs smoothly. We recommend pulling documents together into one folder so everyone can access the information quickly.
Core facts to have to hand
Trust name, the date the settlement was created and confirmation it is an express arrangement. Also note whether the settlement has bought UK land or property.
Lead trustee and identity
The lead trustee acts as the single contact point for government correspondence. For UK citizens include National Insurance number, address and phone. Non‑UK citizens should supply passport details and address.
Settlors, other trustees and beneficiaries
Record settlor name, date of birth, date of death if deceased, last country of residence and nationality. HMRC asks about mental capacity for living settlors.
For other trustees, protectors and beneficiaries list names, dates of birth, nationality and country of residence. For broad classes (for example future grandchildren) state the class clearly.
- Practical tip: make a single “trust registration pack” to keep details up to date.
- For further guidance, see how to manage your trust details.
Extra details required for taxable trusts
Taxable arrangements need extra detail — and getting these ready saves time. When the trust becomes taxable, the TRS is not just an anti‑money‑laundering list. It becomes the base for Self Assessment reporting.
UTR basics: tell us the trust’s UTR if it has one. If not, the lead trustee should apply for one when a return is due. Keep contact details current so HMRC can link the UTR to the trust record.
Asset reporting: what you must supply
Prepare clear descriptions and values at the time of registration. Typical entries include:
- Shares: company name, number of shares, class/type and approximate value.
- Partnerships: brief description, start date and estimated worth.
- Businesses: trading name, activity, address and value estimate.
- Money and valuables: total cash, and descriptions plus values for cars, jewellery or art.
- Property and land: address or description, full market value at registration and the trust’s portion if not wholly owned.
“Accurate valuations at the time of registration reduce follow‑up queries and speed tax processing.”
| Asset type | Required details | Why it matters |
|---|---|---|
| Shares | Company, number, class, value | Shows ownership and capital value for CGT and income |
| Property / land | Address/description, full value, portion owned | Affects SDLT, IHT and potential filing duties |
| Businesses | Name, description, address, value | Clarifies trading income and taxable assets |
| Money & valuables | Total cash, item descriptions, values | Helps confirm balance and capital totals |
For practical help on using an agent to complete the form, see our guide on using an agent to register.
How to register on HMRC’s Trust Registration Service (TRS)
Start by creating the right Government Gateway account — this single step prevents mix-ups later.
Create an Organisation Government Gateway account for the trust
HMRC requires an Organisation Government Gateway user ID and password. Choose “Organisation” when prompted and link the account to the trust name. Each trust needs its own Organisation account so records remain separate and clear.
Why you cannot use an Individual Government Gateway login
An Individual login cannot be used for trust registration. That login type ties to a person, not the legal entity the register needs. Using the wrong login forces you to restart. It also risks mixing records if trustees manage more than one trust.
Submitting the registration and avoiding common data-entry delays
Gather contact details, email, phone and identity documents before you start. Save progress often. Online services slow during busy periods, so avoid leaving the final step until the last minute.
- Double-check spellings and dates.
- Ensure addresses match passports or NI records.
- Be precise with beneficiary classes and property descriptions.
“Inconsistent dates or missing ID are the most common causes of delay.”
Using an agent: authorising a solicitor or accountant
You can authorise an agent to view and update TRS details. Many trustees use a solicitor or accountant for the initial set-up to save time.
Remember: trustees remain responsible for the accuracy of the information and must keep details up to date. For hands-on guidance on the wider process, see our step-by-step advice on how to register a trust in.
After you register: UTRs, proof of registration and ongoing duties
When the registration goes through, there are a few practical outcomes trustees must note.
What you receive
Taxable trusts get a Unique Taxpayer Reference sent to the lead trustee by post. This usually arrives within 15 working days.
Non-taxable arrangements show a unique reference in the online service. Log back in to view that number after submission.
Downloading evidence for new business relationships
You can download an evidence of registration PDF from the service. Banks, investment platforms and solicitors will accept this when the settlement opens accounts or starts services.
Keeping details up to date
TRS is not one-and-done. Trustees must keep contact details and records current. The lead trustee should be the main contact for post and email.
Penalties may apply for failing to update important details.
Beneficiary records and practical routine
Record named beneficiaries fully. For classes of beneficiaries, keep clear internal lists. Where more than 25 people are entitled, the online register allows a summary. Still, keep a complete list in your own files.
| Item | Action | Why it matters |
|---|---|---|
| UTR / unique reference | Keep securely and share with agents when needed | Needed for tax returns and account openings |
| Evidence PDF | Download and supply to banks or advisers | Speeds opening accounts and proving compliance |
| Beneficiary list | Update when someone becomes named or benefits | Avoids disputes and meets record duties |
| Annual review | Check trustees, beneficiaries and tax triggers yearly | Prevents late penalties and keeps records accurate |
“Keep the lead trustee contact current and review records at least once a year.”
Penalties and problems: what happens if you do not register or update
Small gaps in trustee records can lead to large fines and extra work. We explain the risk plainly and calmly.
What the law says
HMRC can charge penalties of up to £5,000 for failing to register or for not keeping the trust register up to date.
Common ways this happens
- Trust created years ago and forgotten.
- Change of trustees not updated on the record.
- Trust becomes liable to tax after earning income or selling an asset.
Practical steps if you miss the deadline
Register as soon as you can. Gather a clear timeline of trigger dates and events. Prepare to explain the reason for lateness if asked.
Why updates matter as much as first registration: if the lead trustee contact point is wrong, UTRs, Self Assessment and compliance checks are hampered. Keep names, addresses and other key details current.
“Act quickly, keep clear records and seek help if the situation is complex.”
Reduce future risk
- Set calendar reminders for review dates each year.
- Keep one secure set of trustee and beneficiary information.
- Ask a solicitor or accountant for help when overseas elements or property are involved.
Conclusion
Finally, keep in mind the small actions that prevent big headaches for trustees and beneficiaries.
Our key message is simple. Registering a discretionary trust with HMRC is about compliance and protecting how the arrangement works in practice, especially with banks and advisers.
Check whether the settlement is an express arrangement, confirm any Schedule 3A exclusions, then apply the correct deadline based on creation date and whether the entity is taxable.
Good record-keeping on assets, property and beneficiary details reduces stress in the years ahead. The set-up exists to support family needs, so accuracy is part of your duty.
Next step: gather the deed, list the people involved, note UK land or overseas triggers, and use the Trust Registration Service or appoint an agent before deadlines bite.