HMRC confirms penalty for non-compliant trusts
Trusts can be a complex subject when it comes to tax. Recent changes mean that even the most basic of arrangements might need to be declared to HMRC. What penalty could you incur if you don’t get things right?
The trust registration service was introduced to provide HMRC with details about trust assets and beneficiaries - to help prevent money laundering. Initially, only trusts with a tax liability were required to register - but the regulations have since been extended to most trusts. New HMRC guidance confirms that a fixed penalty of £5,000 applies if a trustee fails to register a trust, or maintain the trust register. However, the guidance also states that, as this is a new requirement, penalties won’t be charged if the failure was not deliberate, and the register is updated within a time limit set by HMRC.
The deadline to register the majority of trusts was 1 September 2022. You can check whether your arrangement needs to be registered here.
Related Topics
-
HMRC urges agents to review excepted estates
HMRC is reminding tax agents to review inheritance tax (IHT) returns submitted for excepted estates following changes introduced from 1 January 2025. The warning follows concerns that some estates may have been incorrectly treated under the new rules. What should you check?
-
Government launches consultation package on HMRC powers and tax administration
The government has launched a wide-ranging package of consultations on tax administration, including proposals to strengthen HMRC's debt recovery powers, modernise tax agent regulation and expand the use of digital services. Several of the measures could have significant implications for taxpayers and advisers. What has been proposed?
-
What are HMRC’s new procedures for export evidence?
HMRC has updated its guidance about the proof of export you must retain if you ship goods abroad and zero-rate the sales. How will the new guidance affect your business?
This website uses both its own and third-party cookies to analyze our services and navigation on our website in order to improve its contents (analytical purposes: measure visits and sources of web traffic). The legal basis is the consent of the user, except in the case of basic cookies, which are essential to navigate this website.