The new online Trusts Registration Service, developed in response to European anti-money laundering rules, was launched in July. It requires that all trusts and complex estates with a tax liability register by October 5th in the tax year after the trust was established.
Under the registration requirements, trust and estate beneficial ownership information must be submitted.
HMRC said of the deadline extension: “In this first year of TRS, to allow sufficient time to complete the registration of a trust for self-assessment and provide beneficial ownership information there will be a two-month extension to the deadline. No penalty will be imposed where registration is completed after 5 October but before 5 December 2017.”
Role of trustee is complex
Gordon Andrews, financial planning expert, Old Mutual Wealth, said: “The extension in the trust register deadline may be an indication that people are struggling to provide the information required. The role of trustee is complex and many ‘ordinary’ people acting as a trustee may be unaware, and unequipped to deal with the ongoing administrative and tax burden.
“This is where a professional trustee can help; when recommending trusts to clients, advisers should also consider whether appointing a professional to manage the trust would be appropriate.”
The trusts register will sit alongside the UK’s existing company beneficial ownership register, both of which exist to help tackle money laundering and tax evasion.
