Do You Need to Register a Trust with HMRC? UK Trust Registration Guide

If you are a trustee, you may need to register a trust with HM Revenue & Customs (HMRC) through the Trust Registration Service (TRS). Importantly, registration is not limited to trusts that pay tax. Many UK express trusts must appear on the register of trusts even where they have no current UK tax liability.

The rules are designed partly to support the UK’s anti-money laundering requirements. Whether registration is required depends on the type of trust, its tax position, residence and whether a specific exclusion applies.

Trustees should check the position when a trust is created and whenever its circumstances change. HMRC’s current guidance warns that failure to register when required can result in a penalty of up to £5,000. Wider personal tax planning can also help trustees consider registration alongside the trust’s broader tax obligations.

What Is a Trust?

A trust is a legal arrangement under which trustees manage money, property, investments or other assets for beneficiaries according to the terms under which the trust was established. Understanding how trusts work in the UK  guidance can help settlors and trustees understand the different roles, structures and tax responsibilities involved.

The person who creates the trust and transfers assets into it is generally known as the settlor. The trustees become responsible for administering those assets, while the beneficiaries are the people or organisations who may benefit from the trust.

Trusts can be established for many reasons, including estate and succession planning, holding assets for children, providing for vulnerable beneficiaries and managing family wealth. Different types of trust have different Income Tax, Capital Gains Tax and Inheritance Tax consequences. Where business interests are held within the arrangement, IHT Business Relief eligibility may also need to be reviewed to determine whether the assets meet the relevant conditions for relief.

Which Trusts Need to Register with HMRC?

The starting point is that most UK express trusts must register through the TRS unless they fall within a specific exclusion.

This is an important correction to older guidance suggesting that a trust only needs registration when it generates taxable income or capital gains. HMRC confirms that all UK resident express trusts generally need to register even without a UK tax liability unless they are excluded as Schedule 3A trusts.

A trust may therefore need registration because it is:

• A UK express trust that is not specifically excluded.
• A trust liable for relevant UK taxes.
• A non-UK express trust with certain UK connections.
• A trust that needs a Unique Taxpayer Reference (UTR) for particular reporting purposes.

When Must a Taxable Trust Be Registered?

A UK or non-UK trust may need to register a trust UK through the TRS when its trustees become liable for relevant UK taxes on UK assets or income. Where trustees dispose of chargeable assets, the rules for Capital Gains Tax for trusts in London should also be considered when determining the trust’s tax and reporting obligations.

Relevant taxes can include:

• Income Tax.
• Capital Gains Tax.
• Inheritance Tax.
• Stamp Duty Land Tax.
• Land and Buildings Transaction Tax in Scotland.
• Land Transaction Tax in Wales.

Where a trust holds qualifying agricultural property, Agricultural Property Relief guidance can help trustees assess the potential effect on the trust’s Inheritance Tax position.

A trust may also need registration where a tax relief removes the eventual liability but the trustees need to claim that relief through Self Assessment. Where a trust holds qualifying business assets, Business Relief for Inheritance Tax may also need to be considered when establishing the trust’s wider IHT position.

Do Non-Taxable Trusts Need to Register?

Yes, in many cases. A trust does not automatically escape trust registration simply because it has no tax to pay.

UK resident express trusts generally need to register unless they qualify for an exclusion under Schedule 3A of the Money Laundering Regulations.

For example, a discretionary trust holding investments for family beneficiaries may still require registration even if it has generated no taxable income or gains during the year. Our discretionary trust guidance in London explains how this type of trust operates and the responsibilities trustees may need to consider.

This is why trustees should consider the type of trust first rather than using tax liability as the only test.

Which Trusts Are Excluded From Registration?

Certain trusts are classified as Schedule 3A trusts, also known as excluded express trusts. These generally do not need to register unless they become liable for UK tax.

Examples can include:

• Certain statutory trusts created by law or court order.
• Trusts holding assets of UK registered pension schemes.
• Certain trusts holding qualifying life insurance policies.
• Qualifying charitable trusts.
• Certain trusts established to open bank accounts for children.
• Qualifying will trusts that hold estate assets for no more than two years following death.
• Certain pilot trusts established before 6 October 2020 containing no more than £100.
• Certain co-ownership trusts.
• Specified financial and commercial trusts.

HMRC introduced updated guidance in June 2026 that also includes a general Schedule 3A exclusion where several conditions are met. Broadly, the trust must have no UK land interest, no assets of appreciable worth exceeding £2,000, cumulative property of no more than £10,000, annual income no higher than £5,000 and no UK tax liability. The exclusion is generally limited to one such trust per settlor.

The full conditions should be checked rather than assuming a low-value trust is automatically excluded.

Do Co-Ownership Property Trusts Need Registration?

A common question arises where two or more people jointly own property.

HMRC provides an exclusion for certain co-ownership trusts where the trustees and beneficiaries are the same people. These arrangements frequently arise when people purchase land or property together in England and Wales.

However, the precise beneficial ownership arrangement matters. A separate declaration of trust that creates interests for people other than the legal owners, for example, may require a different analysis.

Do Will Trusts Need to Register?

A trust created under a person’s will can qualify for an exclusion where it comes into effect on death and holds estate assets for no longer than two years following the death.

If the trust continues beyond the qualifying period, trustees should reconsider whether registration is required.

Trustees should also remember that a Schedule 3A exclusion does not necessarily prevent registration where the trust separately becomes liable for relevant UK tax.

What About Non-UK Trusts?

Non-UK trusts can also fall within the Trust Registration Service rules.

Registration may be required where a non-UK trust becomes liable for relevant UK tax on UK income or assets. Certain non-UK express trusts may also need to register where they acquire UK land or property.

A non-UK express trust with at least one UK-resident trustee may also need registration where the trustees enter into a qualifying business relationship with a UK relevant person, unless an exclusion applies.

How Do You Register a Trust with HMRC?

If you have established that you need to register a trust, registration is completed online using HMRC’s Trust Registration Service.

The trustees will need information about the trust and the people connected with it. Depending on the arrangement, this can include details about:

• The trust itself.
• The lead trustee and other trustees.
• The settlor or settlors.
• Beneficiaries or classes of beneficiaries.
• Other individuals exercising control over the trust.
• How and when the trust was created.
• The trust’s tax status.

HMRC provides an online service for registering your trust as a trustee once you have established that registration is required.

When Is the Trust Registration Deadline?

There is no single registration deadline that applies to every trust. The deadline depends on whether the trust is taxable or non-taxable, when it was created and, in some cases, the type of tax involved.

For registrable non-taxable express trusts arising after 6 October 2020, the general requirement is registration within 90 days of becoming registrable.

Taxable trusts created on or after 6 April 2021 generally need to register within 90 days of becoming liable for relevant UK tax.

Different deadlines can apply to older taxable trusts. For example, where a trust created before 6 April 2021 becomes liable to Income Tax or Capital Gains Tax for the first time, registration may be required by 5 October in the following tax year. Other circumstances can carry a 31 January deadline.

The reference content’s statement that trusts generally register within 90 days or by 1 September of the financial year is therefore not an accurate description of the current rules.

What Happens After You Register a Trust?

Trust registration is not necessarily a one-off compliance exercise. Trustees are responsible for keeping relevant information on the TRS accurate.

Changes to trust details or beneficial ownership generally need to be reported within 90 days of the trustees becoming aware of them.

Where a trust is taxable, the trustees must also make an annual declaration by 31 January following the end of a tax year in which a tax liability arises, confirming that the information held on the register is up to date.

What Changes Should Trustees Report?

Depending on the trust, trustees may need to update HMRC where information changes concerning the trust or its beneficial owners.

This can include changes involving:

• Trustees.
• Beneficiaries.
• Settlors.
• People exercising control over the trust.
• The trust’s contact information.
• Its tax status.

If a registered non-taxable trust subsequently becomes taxable, its TRS status must also be updated so that HMRC can issue a UTR where required. Trustees holding agricultural or business assets should also consider the APR and BPR changes in London when reviewing the trust’s wider Inheritance Tax position.

What Happens When a Registered Trust Ends?

Trustees should update the register of trusts when a registered trust comes to an end.

HMRC’s online service allows trustees to close the trust record and provide the date on which the trust ended. Trustees may still have tax reporting obligations for the tax year in which the trust ceased.

Simply distributing all the trust assets does not mean the TRS record can be ignored.

Penalties for Failing to Register a Trust

Trustees should not assume that registration is optional simply because the trust has little or no income.

HMRC’s current guidance states that failure to register a trust when required may result in a penalty of up to £5,000.

Trustees should therefore establish whether an exclusion genuinely applies and retain appropriate evidence supporting their decision.

Common Trust Registration Mistakes

• Assuming only taxable trusts need to register.
• Assuming every family trust is exempt from registration.
• Confusing a Schedule 3A exclusion with a general exemption from tax.
• Using an outdated registration deadline.
• Failing to register a trust after its circumstances change.
• Not updating trustee or beneficiary information.
• Failing to change a registered trust from non-taxable to taxable when required.
• Forgetting to close the TRS record after the trust ends.
• Assuming a will trust remains excluded indefinitely.

Check Whether You Need to Register a Trust

The question of whether you need to register a trust depends on more than whether the trust currently pays tax. Most UK express trusts fall within the Trust Registration Service unless a specific Schedule 3A exclusion applies, while taxable trusts and certain non-UK trusts can have separate registration requirements.

Before registering your trusts, trustees should identify the type of trust, establish whether it is an express trust, review any Schedule 3A exclusion and check whether a UK tax liability or other UK connection creates a registration requirement.

Once registered, the register of trusts should also be kept up to date. Changes to beneficial ownership, trustees and other relevant details can create further reporting obligations, so TRS compliance should form part of the trust’s ongoing administration rather than being treated solely as an initial registration task.

Disclaimer: This article provides general information about UK trust registration based on HMRC guidance available for 2026/27. Trust residence, tax liabilities, the terms of the trust and individual circumstances can change the registration requirements.

Case Study: Identifying an Unregistered Family Trust Before HMRC Penalties

Sarah approached our Farringdon office after becoming a trustee of a family trust established to hold investments for her children. The trust had not generated a significant tax liability, so the family had assumed there was no requirement to register the trust with HMRC.

Cigma Accounting reviewed the trust deed, its assets, beneficiaries and tax position. We explained that Trust Registration Service requirements are not limited to taxable trusts and that many UK express trusts must be registered unless a specific Schedule 3A exclusion applies.

We then considered whether the trust met any of the available exclusions. After reviewing its structure and investment assets, it became clear that the family could not simply rely on the fact that little tax was payable. We therefore helped the trustees establish their Trust Registration Service obligations and identify the information needed about the settlor, trustees and beneficiaries.

Our wider review also covered the trust’s Income Tax, Capital Gains Tax, Inheritance Tax and ongoing accounting requirements. We explained that registration was only one part of compliance: relevant changes to trustees, beneficiaries and other trust information may also need to be updated on the register within the applicable deadlines.

Sarah and the other trustees were left with a clearer understanding of their responsibilities, the records they needed to maintain and the steps required to bring the trust’s HMRC position up to date before registration failures created greater compliance concerns.