We guide families through the practical steps of registering and reporting. This short page explains what an hmrc trust fund is, why registration matters and when you must act.
Clear rules exist: register to meet anti‑money laundering checks and to get a UTR for Self Assessment. Missing or out‑of‑date details can mean penalties up to £5,000. We lay this out in plain English so you can protect assets without getting lost in legal wording.
We will map the two main compliance areas: the TRS (Trust Registration Service) and tax reporting through Self Assessment when it applies. Expect simple checklists and realistic examples.
Key Takeaways
- Register if rules require it — it’s not optional.
- Keep details current to avoid penalties.
- TRS and Self Assessment cover different reporting duties.
- Assuming no tax means no registration is a common mistake.
- Child Trust Fund rules can differ from other schemes.
Understanding trust funds in the UK and how HMRC fits in
A clear, practical definition helps homeowners spot when a legal arrangement becomes something they must report. We use everyday words so the rules are easy to follow.
What a trust deed does
Think of a trust as a legal “container” that holds assets. The settlor moves money or property into that container and trustees manage it for others to benefit.
The trust deed names the arrangement, sets the creation date and lists the rules trustees must follow. It also records who can receive benefit and how.
Key roles explained
Who does what:
- Settlor — the person who puts assets in.
- Trustees — the people who run the arrangement and keep records.
- Beneficiaries — those who receive benefit.
- Protectors — optional, they may oversee trustees in some setups.
Why oversight matters
Oversight supports transparency and anti‑money laundering checks. That means even family arrangements can need registration and up‑to‑date details.
“Keep clear records and be ready to show what the arrangement is for.”
If you suspect a family payment or shared account has accidentally become a reportable arrangement, check the rules and learn how to access a trust.
Types of trusts HMRC recognises and why the type changes your tax
Different legal forms of a trust change who pays tax and what trustees must record.
We cover the three common shapes and give plain examples so you can see how rules apply to a family home, investment funds or shares.
Bare trusts
With a bare arrangement the beneficiary is treated as the owner for tax purposes.
That means income and gains usually sit with them, so trustees rarely report the income tax or capital gains tax themselves.
Interest‑in‑possession
Here someone has a right to the income as it arises. Income is typically taxed on that person.
This is common in wills when a spouse receives the income but not full ownership of capital.
Discretionary arrangements
Trustees decide who gets what and when. That flexibility is useful but makes reporting more complex.
Trustees often face income tax, gains tax and sometimes inheritance tax duties to record and pay.
“Know the shape first — the numbers follow its rules.”
When an hmrc trust fund must be registered on the Trust Registration Service
Registering with the Trust Registration Service is often about proving who is responsible, not just about paying tax.
What the Service does: it holds names, an address and basic information so banks, solicitors and the government can check who controls an arrangement.
When you must register even with no tax liability
All UK express arrangements must register unless a clear exclusion applies. That means many domestic schemes need an entry on the Service even if they pay no tax now.
When registration is triggered by tax
Registration is also required if the arrangement is liable to:
- Income tax
- Capital gains tax
- Inheritance tax, stamp duty and other UK property transaction taxes
UK versus non‑UK rules
Non‑UK arrangements must register if they acquire UK land or have a UK‑resident trustee and enter a UK “business relationship”.
“Do we have an express arrangement? Is it excluded? Is it liable to tax? Do we hold UK property?”
Get registration right. Without it you can face delays when institutions ask for proof of registration and up‑to‑date details.
Checking if your trust is excluded from TRS registration (Schedule 3A)
Some everyday arrangements are excluded under Schedule 3A — but the rules have limits.
Common excluded express arrangements homeowners meet
Schedule 3A covers things like UK registered pensions, life policies that pay out on death or serious illness, charities and simple accounts set up for a child.
Co‑ownership arrangements (for example, tenants in common) and small pilot arrangements set up before 6 Oct 2020 also appear on the list.
Where people get caught out
Assuming an arrangement is excluded because it is small or simple is a common mistake.
A will‑based arrangement is only excluded if it closes within two years of the date of death. Changes to assets, income or trustees can remove an exclusion.
“Keep a short written note explaining why you think an arrangement is excluded.”
Key point: an excluded arrangement must still be registered if it becomes liable to UK tax. If you are unsure, get a solicitor or accountant to confirm — fixing late registration is harder than doing it right first time.
Trust registration deadlines and what happens if you miss them
A clear timeline stops confusion about when you must register and what a missed date can cost. We set out the key dates so you can place your arrangement against the right rule and act early.
Non-taxable arrangements and the 90‑day rule
For non-taxable arrangements created after 6 Oct 2020, registration is required within 90 days of creation or of becoming liable to tax. Created usually means the deed is signed and assets move in — not when you first discuss plans.
Taxable arrangements: main deadlines
For taxable arrangements created on/after 6 Apr 2021, you must register within 90 days of becoming liable to tax.
For arrangements made before 6 Apr 2021, the first-time Income Tax/CGT registration deadline is 5 October following the tax year of first liability. Otherwise, the usual deadline is 31 January after the tax year.
Penalties and next steps
Penalties for failing to register or keep details up to date can reach £5,000. Missing a date also causes practical problems with banks and advisers.
“If you think you’re late, register straight away and keep a short note explaining the delay.”
Practical tips: set calendar reminders, file the deed safely and, if late, register now and document what you did. For penalties guidance see penalties and procedures.
How to register a trust with HMRC online using Government Gateway
Start online by making sure you have the right Government Gateway account for the job. You must use an Organisation Government Gateway ID — an individual login will not work for TRS registration.
We recommend preparing the lead trustee’s details before you begin. Keep their full name, address and contact details ready. The lead trustee is HMRC’s main contact, so an up‑to‑date address avoids missed letters and delayed numbers.
Key steps in the online journey
- Create or use an Organisation Government Gateway account and label it for the correct trust.
- Nominate a lead trustee and enter their address and contact details.
- Complete the online form and submit — allow time for verification.
After submission a taxable arrangement normally gets a Unique Taxpayer Reference within about 15 working days. Non‑taxable arrangements show a unique reference number on the service once the entry is saved.
Download proof of registration by selecting “Get evidence of the trust’s registration” on the page. Banks and solicitors often require that PDF when starting new business relationships.
| Action | Who needs it | Expected outcome |
|---|---|---|
| Create Organisation Government Gateway account | Each trust or fund | Allows TRS registration |
| Nominate lead trustee | Trustees | Primary contact for correspondence |
| Submit registration | Trust administrators | UTR or unique reference issued |
| Download proof PDF | Trustee or agent | Document for banks and advisers |
“Label each account clearly — each arrangement needs its own Organisation Government Gateway ID.”
If you act as an agent, see our guidance on registering as an agent so you link the right account to the right arrangement.
What information you’ll need before you start TRS registration
Before you start the online form, gather key paperwork so you don’t stop midway.
We give a short checklist to collect the essential information and details in one go. This saves time and reduces mistakes.
Trust basics
Record the trust name, the creation date and confirm whether it is an express arrangement. Have the deed ready to prove the status.
Lead trustee details
Prepare the lead trustee’s full name, address, date of birth and national insurance number. If not a UK citizen, use passport details, country of residence and a phone number.
People and beneficiary classes
List settlors, trustees, protectors and beneficiaries. Note classes of beneficiaries (for example, “future grandchildren”) and update the list when individuals become known.
Extra information for taxable arrangements
For taxable trusts gather asset details and valuations: shares (company, number, class, value), property (address and value), business interests and total money held. Accurate valuations avoid later corrections.
“Assemble one folder — digital and paper — with the deed, ID and valuations to make yearly updates easy.”
Trust tax and reporting explained: Income Tax, capital gains tax and more
We explain which taxes commonly touch a family arrangement and when you must report. This is about triggers, not rates. Spotting a trigger early stops simple steps becoming costly.
Income tax: when a return is needed
Income received by the arrangement — rental receipts, dividends or interest — can create an income tax duty. Trustees may need to file a Self Assessment trust tax return and get a UTR for the arrangement.
Action: keep records of income and who it is paid to. File a return if the arrangement is liable.
Capital gains: disposals of shares, investments and property
Selling assets like shares, funds or property can produce gains. If there is a chargeable gain, trustees must report and may pay capital gains tax.
Record acquisition dates, costs and sale values to calculate gains accurately.
Inheritance tax and other charges
Some arrangements face inheritance tax charges during their life or when assets move in or out. Property transactions can also trigger stamp duty land tax, stamp duty reserve tax or the devolved land taxes in Scotland and Wales.
| Tax type | Typical trigger | Reporting required |
|---|---|---|
| Income tax | Rental, interest, dividends | Self Assessment trust tax return; UTR |
| Capital gains tax | Sale of shares, investments, property | Report disposal; pay CGT if due |
| Inheritance tax | Transfers in, ten-year charges, exit charges | Record and seek advice; report to Revenue if liable |
| Property taxes | Buying or transferring land | Stamp duty or devolved land tax return |
“Spot the trigger, keep clear records and take advice before major transactions.”
For ways to plan to avoid inheritance tax, see our guide on how trust funds can help to avoid inheritance. Good records and early advice protect family assets.
Ongoing compliance after registration: keeping TRS up to date
We treat the register as a live record. Keep it current and you avoid penalties and delays when dealing with banks or advisers.
Reporting changes
Report changes to trustees, beneficiaries, the lead contact and basic details quickly. That includes a new name, address, or a change of nominated person.
- Trustee name or contact changes
- Beneficiary additions or removals
- Changes to assets or valuations
- Lead person address or phone updates
Record‑keeping basics
Keep short notes of decisions, asset movements and the deeds. Store scans of ID, valuations and the completed form for each update.
| Action | Why | What to keep |
|---|---|---|
| Update contact details | Avoid missed letters | Current address and number |
| Record asset changes | Correct tax reporting | Valuation and date |
| Authorise an agent | Professional help | Agent reference and authorisation |
Exceptional cases: risk of harm
If a beneficiary faces danger, send a risk of harm note to trs.riskofharm@hmrc.gov.uk with the arrangement reference, number and reasons. Exemptions last 12 months and must be reviewed annually.
“Keep a short file of updates — that small habit saves time and stress.”
Need help? You can view and amend registration online or authorise an agent to act for you.
Child Trust Fund and HMRC: how it differs from other trust funds
Many people assume a child trust fund works like a family arrangement, but it follows different rules. It behaves more like a tax-free savings and investment account than a private deed‑based setup.
Who qualifies: children born between 1 September 2002 and 2 January 2011 usually had one. Some accounts moved into a Junior ISA later, so check the status before acting.
Tax treatment
The key advantage is tax sheltering. Income and gains inside these accounts are exempt from UK income tax and UK capital gains tax. That makes them useful for long-term savings.
Finding and managing an account
Use GOV.UK to locate an account. You’ll need a Government Gateway login and details such as the child’s name, date of birth and either their national insurance number or the account’s unique reference.
Contributions are limited. The yearly subscription cap is £9,000, and family or friends can add money up to that limit.
Control at 16 and 18
A registered contact can manage the account initially. At 16 the child may take over management. At 18 they get full control and can withdraw, transfer to an ISA or keep investing.
“Use the free GOV.UK finder before paying anyone to trace an old account.”
Conclusion
Doing the basics — identify the arrangement, register if needed and keep records — saves time and stress.
Keep the register up to date. Many family arrangements must appear on the TRS even when there is no immediate tax liability. Missing updates can attract penalties from hmrc.
Common triggers are income, capital gains, inheritance events and property transactions. Check these before you act.
Next steps: confirm the legal nature of your arrangement, review Schedule 3A exclusions, note registration deadlines and gather IDs, valuations and deed details.
Good record-keeping protects beneficiaries and makes reporting far easier. If you need help locating an account, see our guide to find a trust fund. Remember, Child Trust Fund rules differ and are usually tax-free.