Guidance

HMRC Trusts and Estates Newsletter: August 2022

Updated 26 March 2024

Welcome to the August 2022 edition of the HM Revenue and Customs (HMRC) Trusts and Estates Newsletter.

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Reporting a discrepancy in Trust Registration Service data

From September 2022, relevant persons must ask trustees or agents who are engaging in a new business relationship with them to provide proof of registration on the Trust Registration Service.

A relevant person is an organisation working in a professional capacity that carries out due diligence checks under anti-money laundering regulations. Relevant persons are also known as obliged entities.

The trustee or agent who is engaging in the business relationship will need to use the online service to download a PDF copy of a report to show proof of registration. This report can be emailed to the relevant person or alternatively, can be printed off.

If a relevant person finds a discrepancy in trust data when reviewing proof of registration, these organisations will seek to resolve this directly with the trustee or agent who is engaging in the business relationship in the first instance. For example, by pointing out the discrepancy and asking them to update the proof of registration and provide the updated version. If a relevant person cannot resolve the discrepancy directly with them, they must then report the discrepancy to HMRC.

HMRC will write to trustees if a discrepancy is reported, asking for the discrepancy to be resolved. If the trustee wishes for their agent to action the discrepancy letter, they must pass this onto their agent themselves.

Once the trustee or agent has made the appropriate changes, they should download a new proof of registration document and supply this to the relevant person. If the relevant person is satisfied that the discrepancy has been resolved, they can continue to engage in a business relationship with the trust.

Further details on discrepancy reporting will be shared through guidance published on GOV.UK. The Trust Registration Service Manual has been updated.

Trust Registration Service Data requests

From September 2022, HMRC may share information on the Trust Registration Service (TRS) in limited circumstances with some third parties following a Trust Data Request. Trust Data Requests can be submitted on or after 1 September 2022.

Legitimate Interest Trust Data Request

Individuals or organisations must demonstrate that they are looking into a specific instance of money laundering or terrorist financing in relation to a specific trust, and that the information on the register that is the subject of the request will further that investigation.

Offshore Company Trust Data Request

Data can be requested on a trust that holds a controlling interest in a non-EEA (‘third country’) company or other legal entity. A ‘controlling interest’ is usually where the trust holds more than 50% of the shares in the entity or can control it in some other way.

Trust Data that may be shared

The information HMRC can share about a trust will be limited to the beneficial owners that are associated with the trust. For individuals, this includes the name, month and year of birth, country of residence, nationality, and their role in the trust.

For companies and other legal entities, the information will be limited to their name, office address and their role in the trust.

Circumstances where HMRC will not share data

HMRC will not share data on certain types of trusts, for example:

• non-express taxable trusts that are registered only because of a liability to UK taxation and not also as a registerable express trust
• express trusts which are excluded from registration, which are only registered because of their liability to UK taxation. A list of these can be found at TRSM23000
• non-UK trusts with no trustees resident in the UK, that are registered only because they hold UK land or property

For legitimate interest Trust Data Requests, if HMRC deems that the legitimate interest has not been adequately demonstrated, HMRC will not share information on the register. Legitimate interest is not adequately demonstrated when:

• the requestor is not requesting data in order to further an investigation into a specified instance of money laundering or terrorist financing
• the information provided by the requestor does not sufficiently show reasonable grounds for suspicion of money laundering or terrorist financing on the specific trust on which the request has been made

For offshore company Trust Data Requests, if Trust Registration Service records do not show that a controlling interest in an offshore company exists, HMRC will not share information held on the register.

HMRC will not share information on specific individuals if exemptions apply to them, this means if we have been made aware that the individual:

• is under 18
• lacks mental capacity
• is at a disproportionate risk of one of the following: fraud, kidnapping blackmail, extortion, harassment, violence or intimidation as a result of releasing that information.

If you are a trustee and consider that any beneficial owner of the trust would be exposed to a risk of fraud, kidnapping, blackmail, extortion, violence or intimidation as a result of their trust information being disclosed, let HMRC know by following the guidance at TRSM60040.

Further details on Trust Data Requests will be shared through future communications, guidance will be shared on GOV.UK. The Trust Registration Service Manual has been updated.

Posting your IHT400 Inheritance Tax account to HMRC

When sending your IHT400, do not include any other HMRC forms or letters which relate to non-inheritance tax matters. Doing so may result in a delay in processing your account and issuing your IHT421.

New way to pay Inheritance Tax

Customers can now pay their Inheritance Tax bill online. Customers will need to sign in to their online or mobile banking app to approve the payment. Do not include probate fees in the payment amount.

Payments from the deceased’s bank account cannot be paid this way and customers should continue to use the IHT423. If, in exceptional circumstances you need to pay by cheque, remember to send this separately to your IHT400 and not in the same envelope.

Process for Inheritance Tax clearance

If you want to apply for clearance in respect of an Inheritance Tax liability, you must use form IHT30 ‘Application for a clearance certificate’. Only do this when you are sure there will be no further changes that will affect the tax position on the estate. We will not accept a letter requesting clearance.

Do not send your IHT30 at the same time as amendments to the account as clearance should only be applied for after all amendments have been reported to, and accepted by, HMRC.

The Inheritance Tax legislation states that it is appropriate to apply for clearance once 2 years have passed since the date of death. In practice, we will consider a request for clearance earlier than this, but only if you are sure that there will be no more changes to report. We would not normally expect you to apply until a year has passed since the date of death.

During coronavirus (COVID-19) we replaced stamping and returning the IHT30 form with a separate certificate, SL120. We have now made this change permanent and the SL120 is being amended to remove the reference to COVID-19.

Original documents for Inheritance Tax accounts

Do not send original wills, deeds or powers of attorney with your Inheritance Tax account — send a photocopy. HMRC do not require the originals for Inheritance Tax cases and we cannot guarantee their return.

Capital Gains Tax on UK Property Account guidance

The guidance in the manual for the Capital Gains Tax on UK Property Account, has been updated to make it easier for customers to navigate. The previous manual has been archived.