Don't mistrust Trusts

When it comes to Trusts, there are new requirements you need to know about.

For most Trusts, Trustees are required to report to HMRC when a tax liability is triggered, including:

  • Capital Gains Tax
  • Income Tax
  • Inheritance Tax
  • Stamp Duty Land/Reserve Tax

Now, Trustees will also have to register non-taxable Trusts and submit annual reports. If you fail to comply, you’ll be fined £100 or more, even if there are no changes to report.

It’s all part of the 5th Money Laundering Directive (5MLD) – although cynics might think it’s simply that HMRC worried they were missing out and want to capture every ‘pound of flesh’ they can. I couldn’t possibly comment 😉

Key dates

The change is round the corner.

  • Existing Trusts have to be registered by 9 February 2022
  • New Trusts have to be registered within 30 days of being taken out
  • CGT and income tax reports are due by 5 October each year, and other reports by 31 January each year

What this means to you

As with many financial matters, the situation is more complicated than we have space for, and there are a few exceptions.

However, please don’t let this extra layer of admin put you off having a Trust – they are still a useful way of protecting your assets for your beneficiaries. And of course we’re always here to help you comply with any requirements.

For more information, please check (Solidus are one of the legal partners we use), and give me a call on 01435 863787.

Lance Baron

Certified Financial Planner (CFP) based in East Sussex, UK. We support people in Southeast England with more than £500K to invest by building a financial plan that will help them live the life they want… until age 100