Deadline to comply with new trusts rules extended by two months
The deadline to register trusts and estates under new rules has been extended by two months, following complaints that the original deadline was too ambitious, potentially leaving many unable to comply.
Under the new rules, trusts and estates that have a tax liability are required to register with the HMRC trusts and estates online service by 5 October in the tax year after they were set up.
Following complaints, the deadline has now been extended by two months, meaning that trusts and estates can now be registered with the Trusts Registration Service (TRS) up until 5 December 2017 without incurring a penalty.
The Trusts Register was launched in July this year in order to provide a dedicated online portal for trustees, representatives and agents to update their records. The service replaces the paper 41G (Trust) form and ad-hoc processes.
HMRC said: “In this first year of TRS, to allow sufficient time to complete the registration of trust for self-assessment and provide beneficial ownership information there will be a two-month extension to the deadline. No penalty will be imposed where registration is completed after 5 October but before 5 December 2017.”