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
-
Cut your losses to get a tax refund
You invested in a company that’s now in dire straits and your shares are worth next to nothing. Selling them isn’t an option so how do you go about getting some tax back on your bad investment?
-
HMRC updates advisory fuel rates from 1 March 2026
HMRC has published the latest advisory fuel and electric rates (AFRs) for company cars, effective from 1 March 2026. Several rates have changed since the previous quarter. What should employers be aware of?
-
5 April deadline approaching for key tax relief claims
With the end of the 2025/26 tax year now less than seven weeks away, business owners and company directors should remember that several valuable reliefs and elections must be made before 5 April. Which opportunities are about to close?