Trust Registration requirements in the UK are changing which means more trusts will be subject to some form of ‘public’ registration.

The proposed Anti-Money Laundering Directive 5 (5MLD for short…) is set to come into force in 2020.

This will affect Trustees, both professional trustees and individuals.

The UK Government consultation paper states that 5MLD must come into effect by 10th January 2020 despite Brexit.

These proposals could put pressure on you and/or your clients so it’s worth keeping abreast of this proposed legislation over the next few weeks.

Headline Points include:

– Unregistered trusts in existence on 10th March 2020, the Government proposes a deadline of 31st March 2021 for them to be registered on the TRS.

– New trusts created after 1st April 2020, the Government proposes that the trust should be registered within 30 days of its creation.

– 30 day deadline will be used for any amendments to be made to TRS data such as name of Trustees. (Once a facility is available)

According to the STEP and Association of Taxation Technicians (ATT), this could increase the amount of trusts registered on the TRS from 200,000 to 2 million!

Overall there will be more trusts that are likely to be caught up in the legislation.

Clients and their advisers need to be aware of how this may affect the use of trusts going forward, especially in terms of how them remain compliant with new and existing trusts.

Let’s hope they simplify the Trust registration process and provide some greater certainty soon!

Contact us today for assistance with current or new trusts.