The UK Trust Registration Service (TRS) was established to register all express trusts (i.e. an arrangement with a clear and deliberate intention to create a trust) in the UK. Originally it included only those trusts which have a tax consequence. A tax consequence means that the trust is liable to pay one of the following taxes: Income Tax, Capital Gains Tax, Inheritance Tax, Stamp Duty Land Tax or stamp duty reserve tax. However, in June 2017, a new EU Directive (5AMLD) removed the tax consequence requirement and provides that the TRS must register all express trusts from 10 March 2020.

This means all trusts in the UK may now have to be registered. This will include" dormant trusts" or those which do not yet have active assets, such as life insurance policy trusts, discounted gift trusts (and perhaps even some assets owned jointly.

Offshore trusts created by non-EU residents which relate to UK properties and business will also have to be registered. It is estimated that around two million trusts will be affected.

Details of the trust's beneficial owners – including settlor(s), trustees and beneficiaries – and the value of the assets at the start of the trust must be disclosed on the trust register. Once registered, the trustees must ensure that the trust's details on the register are accurate and kept upto date.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.