TRSM23070 - Types of trust that need to be registered: contents: excluded express trusts: contents: UK registered pension schemes

Trusts holding sums or assets of a pension scheme already registered in the UK for the purposes of Part 4 of the Finance Act 2004, are excluded from registration as express trusts (Sch3A(3) of the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017). This includes trusts holding sums or assets of pre-6 April 2006 schemes which automatically became registered pension schemes on 6 April 2006 (see PTM031300). 

Pension schemes registered under Part 4 Finance Act 2004 are already registered with HMRC. Trusts holding sums or assets of other pension schemes not registered under Part 4 Finance Act 2004 are still required to register on the Trust Registration Service (TRS). This includes trusts holding sums or assets of non-registered schemes such as employer-financed retirement benefit schemes (EFRBS) and pre-6 April 2006 unapproved schemes such as FURBS (see EIM15010).  

In practice, it can take time for a pension scheme to be approved for registration under Part 4 of the Finance Act 2004. To avoid unnecessary registrations on TRS, registration is not required for trusts holding sums or assets of a pension scheme pending approval of registration to register on TRS in the interim, so long as the trustees have a genuine expectation that the trust will be accepted for that registration. Should the pension scheme registration be refused the underlying trust should then be registered on TRS.

Example

A company sets up an occupational pension scheme and applies for registration with HMRC under Part 4 of the Finance Act 2004.  As the directors have a genuine expectation that this registration will be accepted any trust holding the assets of the pension scheme will not be required to register on TRS in the interim.