New government rules mean trustees and executors of complex estates have to provide details of beneficial owners. Time is running out to provide the extensive details required, with existing trusts which are taxable needing to supply information to HMRC on or before 31 January 2018. Failure to comply with these regulations could potentially lead to criminal proceedings.
The details need to be provided using the new online Trust register found here.
For existing trusts which are taxable, information must be provided to HMRC on or before 31 January 2018. Trusts set up after this date, will have until 31 January following the tax year in which they are first liable to pay UK taxes to report beneficial ownership information to HMRC.
Trustees and executors of complex estates will need to register during the 2016/17 tax year if they incur a liability to one of the relevant taxes listed below:
- Income Tax
- Capital Gains Tax
- Inheritance Tax
- Stamp Duty Land Tax (SDLT)
Trusts don’t need to register if they are terminated, the only exception to this is if they are not already registered with HMRC and need to do so in 2016/17 for self-assessment purposes.
John Endacott, Tax Accounting Partner said:
“We are strongly recommending that trustees get in touch with us. We can either complete the whole process for them or help sign post them to the best way to complete the process themselves. Despite the government introducing these new rules and the tight deadline for compliance, there has been remarkably little publicity about them.
“Either way the registration needs to happen; failure to comply with UK money laundering regulations is a criminal offence, but on a more practical level, the trustees’ UK accountants, lawyers, investment managers and letting agents are unlikely to feel able to do business with non-compliant trustees after January 2018″.