Registering a trust with HMRC is an essential legal step for anyone managing a UK-based or overseas trust that has UK tax responsibilities. Through the Trust Registration Service (TRS), HMRC ensures compliance with anti-money-laundering laws and maintains transparency in financial ownership. The process involves submitting detailed information about the trust, including trustees, beneficiaries, and assets, within specific deadlines to avoid penalties or legal complications.
For first-time trustees, this can feel overwhelming-between setting up a Government Gateway account, obtaining a Unique Reference Number (URN), and providing accurate declarations. Knowing how to register a trust with HMRC correctly saves time, reduces stress, and prevents costly errors. This guide simplifies every step of the process, showing who must register, what documents are required, and how to stay compliant in 2025. By following these steps, you’ll handle your trust registration confidently and maintain full legal compliance with UK tax regulations.
What Is Trust Registration and Why It Matters
Trust registration is not just a procedural formality-it’s a legal responsibility under UK law that ensures transparency in financial activities. The Trust Registration Service (TRS), introduced under the Money Laundering Regulations 2017, was designed to prevent trusts from being used for tax evasion or financial crimes. It provides HMRC with a clear record of all parties involved in a trust, including trustees, beneficiaries, and settlers.
Every express trust, whether UK-based or non-UK but holding UK assets, must register unless it falls under specific exemptions. This includes discretionary trusts, life interest trusts, and bare trusts. By registering, trustees help HMRC maintain oversight of ownership and ensure that all tax obligations are met.
Failure to register on time can result in financial penalties and reputational damage. Trustees are legally accountable for updates and must renew information annually or whenever changes occur. Proper registration safeguards both trustees and beneficiaries by demonstrating transparency, reducing the risk of legal complications, and promoting responsible trust management.
When and Why You Need to Register a Trust With HMRC
You must register a trust with HMRC when it becomes taxable or meets UK reporting rules under the Money Laundering Regulations 2017.
Legal Requirements Under HMRC Regulations
Under the Money Laundering Regulations (MLR) 2017, most express trusts must register with HMRC to ensure transparency and prevent financial misuse. This applies not only to UK-resident trusts but also to non-UK trusts that acquire UK property or generate UK-based income. The purpose is to create a verified record of trust ownership and accountability.
Deadlines for Registration
Newly created trusts must complete registration within 90 days of their formation or from the date they become taxable. While older trusts were initially given transitional deadlines, HMRC now expects immediate compliance once eligibility criteria are met.
Penalties for Late or Non-Registration
Failure to register on time can result in HMRC penalties ranging from £100 to £300, and repeated violations may trigger further scrutiny. Consistent delays can damage a trustee’s reputation and attract unnecessary tax investigations.
Step-by-Step Process – How To Register A Trust With HMRC
Registering a trust with HMRC through the Trust Registration Service (TRS) follows a clear sequence of steps. Below is the process simplified for trustees, solicitors, and agents managing UK or offshore trusts with tax obligations.
- Create a Government Gateway Account
Begin by setting up a Government Gateway account at GOV.UK. Verify your identity as a trustee or as an authorised agent acting on behalf of a trust. - Access the Trust Registration Service (TRS)
Once logged in, navigate to the TRS portal and select “Register a Trust.” This begins the official registration form. - Enter Trust Details
Provide the trust’s official name, date of creation, and the country where it is administered. - Add Trustee and Beneficiary Information
Include full legal names, home addresses, dates of birth, and National Insurance numbers for all trustees and beneficiaries. - Include Settlor and Protector Details
Identify the individual or entity that created the trust (settlor) and any protector responsible for oversight. - Provide Tax Information
Supply the trust’s Unique Taxpayer Reference (UTR), details of income or capital gains, and the tax year in which liabilities apply. - Submit and Save Confirmation
Review all details carefully before submission. Once complete, HMRC will issue a Unique Reference Number (URN) – your official proof of registration.
Documents and Information Needed to Register a Trust
Before starting the registration process, trustees must prepare all necessary documents and details to ensure smooth completion. The most essential document is the trust deed, which outlines the trust’s purpose, terms, and key parties involved. Each trustee must also provide proof of identity – such as a passport or driving licence – along with proof of address.
Trustees must include comprehensive details of the trust’s assets, such as bank accounts, investment portfolios, shares, and property information. HMRC also requires the full identification of all beneficiaries, even if they are minors or part of a discretionary class.
If the trust already has a Unique Taxpayer Reference (UTR), it must be entered during registration. For non-UK trusts, supporting documents that confirm UK connections – such as property deeds or tax records – are also required.
Keeping all information in digital format ensures quick uploads and helps avoid rejection or processing delays in the HMRC Trust Registration Service (TRS).
How to Update or Amend a Registered Trust
Keeping your trust details accurate is crucial for compliance. Learn how to update or amend a registered trust quickly using HMRC’s TRS system.
When Updates Are Necessary: Trust information must be kept current to stay compliant with HMRC rules. Updates are required whenever there is a change in trustees, beneficiaries, or addresses. You must also amend the record if the trust’s purpose, structure, or tax status changes. Regularly reviewing details ensures that the trust remains transparent and legally valid under UK law.
How to Access the TRS for Updates: To make updates, sign in to your Government Gateway account and navigate to the Trust Registration Service (TRS) dashboard. Select “Maintain a Trust” to open existing trust records. You can edit or replace details, confirm accuracy, and resubmit for HMRC approval.
Penalties for Failing to Update: Failing to update within 90 days of a change can lead to fines and potential HMRC review. Keeping trust information current demonstrates good governance and prevents compliance issues.
Common Mistakes to Avoid When Registering a Trust With HMRC
Registering a trust with HMRC requires careful attention to detail. Common mistakes can lead to penalties or delays in the registration process.
1. Entering Incorrect Personal Data or Missing Beneficiaries
Incorrect information or omissions about trustees, beneficiaries, or their details can result in the rejection of your registration. Ensure all personal data is accurate and up to date.
2. Ignoring Deadlines or Assuming the Solicitor Has Registered
Trustees are responsible for ensuring the registration is completed on time. Don’t assume that your solicitor will handle the registration. Always confirm the process has been initiated and completed.
3. Uploading Incomplete Trust Deeds
Ensure that your trust deed is fully complete before uploading it. Incomplete documents may result in delays or further requests for clarification.
4. Failing to Register Non-Taxable Trusts
Even non-taxable trusts must be registered if they meet certain criteria. Failing to register such trusts can lead to non-compliance.
5. Not Keeping Annual Updates
Trustees are required to keep their trust information updated annually, or whenever changes occur. Failing to do so may result in penalties.
By avoiding these common mistakes, trustees can ensure smooth registration and compliance with HMRC’s TRS regulations, saving time and avoiding unnecessary penalties.
Conclusion
Registering a trust with HMRC through the Trust Registration Service is essential for staying compliant with UK regulations. It ensures transparency, reduces legal risks, and confirms the legitimacy of your trust structure. Whether handled personally or via a solicitor, every detail – from accurate beneficiary data to timely updates – matters.
Understanding how to register a trust with HMRC gives trustees confidence in fulfilling their legal obligations, safeguarding beneficiaries’ interests, and avoiding unnecessary fines or complications in the future.
FAQs
Who needs to register a trust with HMRC?
Any express trust with UK assets, income, or tax obligations, unless exempt, must register with HMRC through the Trust Registration Service.
How long does it take to register a trust?
It typically takes a few hours online, but HMRC verification and approval can take several weeks, depending on the complexity.
Can non-UK trusts register with HMRC?
Yes, non-UK trusts must register if they have UK property, income, or any tax obligations connected to the UK.
What happens if I miss the registration deadline?
Late filings may incur fines and additional scrutiny from HMRC, which could lead to further complications and penalties. Do I need a solicitor to register my trust?
It’s not mandatory, but a solicitor can simplify the process, especially for complex trusts with multiple beneficiaries or intricate tax issues.