Implementation of the new TRS rules
The Money Laundering and Terrorist Financing (Amendment) (EU Exit) Regulations 2020 were laid before Parliament on 15 September 2020. Among other things, this statutory instrument (SI) implements the new Trust Registration Service (TRS) rules, as extended by the EU's Fifth Money Laundering Directive, which came into force on 10 January 2020. It is expected that the SI will be implemented as drafted.
When does the SI come into force?
We have previously written about the extension of the TRS rules to require registration of non-UK (and UK) trusts that acquire an interest in UK land, as well as trusts with a UK trustee that enter into a business relationship with a UK-based adviser (or other relevant person). Provided that the SI is implemented as expected, many of the provisions of the SI, including those relating to such trusts, will come into force 21 days after the day on which the SI was laid in Parliament, i.e. 6 October 2020. Thus, trustees of relevant trusts who acquire an interest in UK land or enter into a relevant business relationship on or after this date will be within the extended scope of the rules, and will be required to register on the TRS by 10 March 2022.
Trustees who are in the process of acquiring an interest in UK land or entering into a relevant business relationship may wish to bear this date in mind. However, it should be noted that an acquisition of UK property by a trust is likely to trigger a liability to stamp duty land tax, which itself would prompt a requirement for the trustees to register on the TRS under existing rules.
What are the deadlines for registration on the TRS?
Trustees of non-taxable trusts that fall within the extended registration requirements before 9 February 2022 will be required to register by 10 March 2022. From 9 February 2022 onwards, registration will be required within 30 days of the event that triggers registration.
If you have any queries in relation to the new SI or the requirements for registration on the TRS generally, please get in touch with your usual Forsters contact.