Urgent action required by trustees
HM Revenue & Customs Trust register
As a result of the EU’s Fourth Money laundering Directive, HMRC have recently introduced a Trust Register. The register will be an online record of all trusts subject to UK taxes. The register will contain details of the trustees, settlor, beneficiaries and trust assets.
The deadline for completing the register for trusts created after 6 April 2016 is 5 January 2018 and for trusts in existence before 5 April 2016 the deadline is 31 January 2018.
Automatic exchange of information regulations
These regulations are designed to allow the exchange of information about financial accounts and investments between tax authorities of different countries in order to help stop tax evasion. UK trustees are required to identify any person connected to the trust who have links to countries outside of the trust’s country of residence and report certain details to HMRC.
Legal entity identifier (LEI)
This is a requirement arising from the EU financial markets regulations. Where trustees hold investments there is a requirement to obtain a LEI in order to deal in financial investments through the London Stock Exchange.
Trustees have until 3 January 2018 to obtain a LEI or trading in investments cannot take place. The majority of investment managers will be applying for the LEI on behalf of trustees but we recommend that trustees contact their advisers as soon as possible to confirm the position. Trustees who do not have an investment manager will need to apply for a LEI at the London Stock Exchange.
If you require any further information regarding trustees’ obligations under the new regulations please contact your usual Kreston Reeves adviser here or alternatively contact Jamie Hopkins here or on +44 (0)330 124 1399.
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