New Reporting Obligations for Trustees
07 September 2017
As part of the implementation of the EU's "Fourth Anti-Money Laundering Directive", which took effect on 26 June 2017 were provisions regarding a national "register of trusts". Despite the UK leaving the EU in the next two years it is anticipated that this measure will continue to be enshrined in UK domestic law.
The Regulations are intended to combat money laundering, terrorist financing and other related threats to the integrity of the international financial system. For the time being, at least, the register is therefore not a public one but may be inspected by any law enforcement authority.
This requirement adds another reporting obligation on Trustees following the implication of FATCA in 2013 and the Common Reporting Standard (CRS) in 2015.
As a Trustee, what do I need to know about the register?
UK resident trusts and non-UK trusts with a liability to certain UK taxes must register and provide relevant information to HMRC.
The deadline for reporting is 31st January 2018 for existing trusts or, for new trusts, 31 January following the end of the tax year in which the Trustees first incurred a UK tax liability. However, the Trustees should be aware that they still have a requirement to notify HMRC that they are liable to UK income tax and capital gains tax by 5 October following the year in which they first become liable.