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Will new HMRC Trusts Register affect you?

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A new raft of anti-money laundering rules has important implications for all trusts. Harrison Drury’s Jan Wright sheds some early light on the likely impact.

A new Trusts Register

People who have opened bank accounts recently will know all about the regulatory paperwork confirming their identity – and trusts are the latest target of stringent anti-money laundering laws.

The EU’s Fourth Anti-Money Laundering Directive means the UK is in the process of setting up a new Trusts Register.

Managed by HMRC, the register will set out relevant information for all trusts with UK tax liabilities. This information will then be available to law enforcement officers across the globe.

What does the new register mean for trustees?

The register will require specific information about settlors of any trust, the trustees, any protector, and all beneficiaries.

The current proposals indicate that in each case HMRC will require the person’s name, address, date of birth and national insurance number, or unique tax reference (UTR).

Even discretionary beneficiaries may be included

All beneficiaries’ details will need to be given – even if the trust is discretionary, or when the beneficiaries are not considered to be primary beneficiaries.

In exceptional circumstances HMRC has indicated that it may accept information by way of a description – for example ‘the infant children of Person X’ – but this is still being discussed.

When will these changes come into effect?

HMRC plans to have the register up and running by April 2017, when it will be administered by HMRC Trust Department in Nottingham.

Jan Wright serves on the UK practice committee of STEP (Society of Trust and Estate Practitioners) and is a member of the HMRC Agents Advisory Group for inheritance and capital taxes.

For further information on any trusts issue call Jan Wright on 01539 628042.


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