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Where Taxpayers and Advisers Meet

Trust Registration

SuperSpurs106
Posts:23
Joined:Wed Jun 15, 2022 3:25 pm
Trust Registration

Postby SuperSpurs106 » Wed May 03, 2023 8:21 am

Hi

Hopefully a simple question.

If an individual has a Will and sets up a Trust with a nominal sum of £10 to receive a share of their estate on death for the benefit of one of their children, does that Trust need to be registered at the time it is drafted (even though there it will not be liable to tax at that point)?

TIA

billypiper
Posts:114
Joined:Wed Aug 06, 2008 4:10 pm

Re: Trust Registration

Postby billypiper » Wed May 03, 2023 9:29 am

No

As there is no chargeability to tax no requirement.

Dennis

Taxesclear Ltt

07802704840

SuperSpurs106
Posts:23
Joined:Wed Jun 15, 2022 3:25 pm

Re: Trust Registration

Postby SuperSpurs106 » Wed May 03, 2023 9:49 am

Thank you.

This is the wording taken from Gov.uk which would suggest that the Trust would need to be registered...

"The following types of trusts must register even if they have no tax liability:
all UK express trusts — unless they are specifically excluded (for example, a Schedule 3A trust)"

"When to register trusts that are not taxable
Non-taxable trusts that were created on or before 6 October 2020
The deadline for registrations was on or before 1 September 2022.

Non-taxable trusts created after 6 October 2020
Register within 90 days of it being created or becoming liable for tax, or on or before 1 September 2022 (whichever is later)."

"Register within 90 days of it being created or becoming liable for tax"...well, which one is it Gov.uk??? Why are these things never clear???

pawncob
Posts:5111
Joined:Wed Aug 06, 2008 4:06 pm
Location:West Sussex

Re: Trust Registration

Postby pawncob » Wed May 03, 2023 11:25 am

https://www.taxationweb.co.uk/forum/viewtopic.php?f=8&t=59051&p=215928#p215922
With a pinch of salt take what I say, but don't exceed your RDA

AGoodman
Posts:1767
Joined:Fri May 16, 2014 3:47 pm

Re: Trust Registration

Postby AGoodman » Wed May 03, 2023 1:36 pm

Yes, it is registrable.

All express trusts are now required to register unless they are exempt (listed under Schedule 3A to the Regulations) - https://www.legislation.gov.uk/uksi/2017/692/schedule/3A

Pilot trusts established after the regs changed are not exempt.

Billypiper/Dennis is a little out of date.


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