You do not need to register your trust if it doesn’t meet any of the criteria below. This includes if:
- It is used to hold life or retirement policies that only pay out on death, terminal illness, permanent disablement or to cover the healthcare cost of the person assured.
- It is used to hold money or assets of a UK-registered pension scheme
- The trust is registered as a charity in the UK or not required to register as a charity
- It holds insurance policy benefits received after the death of the person assured (applicable until two years after the death of the assured.)
- It is a co-ownership trust that holds shares of property or assets that are owned by 2 or more people for themselves.
- The trust is for bereaved children under 18 or adults aged 18 to 25, and was created under the will of a deceased parent or the Criminal Injuries Compensation Scheme.
- The trust was set up before 6 October 2020 and holds £100 or less. Any pilot trusts set up after this date will need to register.
- It is a financial or commercial trust, created for professional services or business transactions for holding money for clients or other assets.
If one of these applies to your trust, and becomes liable for UK taxation, you will then need to register it.
There are other examples of trusts that are excluded from registration, including express trusts or trusts created by legislation. It is best to consult a solicitor on whether your trust requires registration in order to avoid any potential legal consequences.
If you’re unsure whether or not your trust needs to be registered, our solicitors can help. Call us directly on 0203 007 5500 to get in contact with one of our specialists.