The headline above is taken from our latest tax tips email for accountants in which we said:
This week we have some good news about the Trust Registration Service, which has been a thorn in the side of all advisers who have trusts as clients. The new SDLT exemption for first-time buyers received a lot of coverage after the Budget, but there are also important changes to SDLT for divorcing couples. Finally, we have a warning about telephone scammers who pretend to be calling from HMRC.
Below is just an extract from our latest email. To receive the full email when it is published each Thursday, simply follow the link on the right (or below, if you’re reading this on a mobile device)
We covered the debacle of the trust registration service (TRS) in our newsletters on; 15 June, 19 October, and 9 November 2017. Throughout that time the professional bodies have been working closely with HMRC to achieve a more workable solution, and we can report that both the process of accessing the TRS, and the data required to be submitted, have been simplified.
You can now access the TRS directly and set up an Agent Services account (ASA) at the same time. You should not have to wait for HMRC to approve your application by email. Also the 2-step verification process is not mandatory to operate the ASA.
You can save the submission of data to the TRS after sending, which will provide you with proof of the data submitted. You can also use dummy information where certain data could not be ascertained, such as the NI number of a deceased settlor.
Where a beneficiary is named, the trustee, or you its agent, will still need to provide the relevant details. However, named beneficiaries whose benefit is contingent on an event occurring do not need to be reported until the contingent event occurs.
Where a beneficiary is not named, as they are part of a class of persons, a trustee only has to identify individuals when they receive a financial or non-financial benefit from the trust after 26 June 2017. The class of beneficiaries should be reported as described in the trust document.
HMRC has updated its guidance on the TRS – see link to draft below – which includes more examples. The ATT has also produced some excellent guidance on the TRS which is freely available to anyone.
All existing trusts need to be registered on TRS by 31 January 2018, and HMRC has indicated that it currently has no intention of moving this deadline although it will be kept under review. There will be a penalty regime for late or incorrect returns; however, we are still awaiting confirmation of what the penalties will be.
Remember that this is just an extract from our weekly email for accountants. To receive the full email when it is published each Thursday, simply follow the link on the right (or below, if you’re reading this on a mobile device)