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
-
Give your children a cheap mortgage
Your son is struggling to get on the property ladder and current mortgage interest rates are making it harder. You’re over the inheritance tax (IHT) threshold but you’re reluctant to give him the money because you’ve heard horror stories about others losing half of it in a divorce. Is a family loan the solution for both of you?
-
Loan Charge settlement offers begin to land
HMRC has begun sending formal settlement offers to individuals and employers with outstanding Loan Charge liabilities, alongside detailed new guidance explaining how offers will be calculated and how long recipients have to respond. What’s the full story?
-
The hidden income tax benefit of marriage
You recently got married and a relative joked that you can save lots of money because of the tax breaks for married couples. As a newlywed are you entitled to a reduction in your income tax bill?