Following changes made to the UK’s anti money laundering laws and implementation of the Fifth Money Laundering Directive, all express trusts must now register with HMRC’s Trust Registration Service (TRS).
An express trust is a trust that has been deliberately created. Land Capital Accounts fall within this definition of an express trust.
As partnerships are not legal entities and cannot own the legal title of the property in the partnership, it is held by the partners as trustees. Where the profit sharing partners and the land owners of the farm property are not the same, the partnership trustees must register as a non-taxable trust.
All existing non-taxable trusts will need to be registered with HMRC’s Trust Registration Service by 1 September 2022.
Failure to register or late registration can lead to a financial penalty.
We are in the process of contacting any clients that fall into this category, but if you have any additional questions about this new reporting requirement, please do not hesitate to contact us.
Posted by Katy Stables
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