Both existing trustees and people considering establishing a trust should be aware that there have been changes to the regulatory framework around UK trusts which could affect them.

As part of legislative efforts to bring trusts into tax transparency and anti-money laundering frameworks, the duties of trustees have been extended to include more administrative and reporting work, including requirements to report to HMRC.

If you are a trustee, you should consider whether the following reporting requirements may apply to the trust you are involved with. Please remember, the liability of the trustees is joint and several. This means that all or any of the trustees can be pursued for failures to meet these requirements, so if you have delegated most of your responsibilities to your co-trustees you should still periodically check in with them to ensure these matters have been considered.

We are highlighting the following duties as we have seen in our practice that many trustees remain unaware of these changes:

  1. HMRC’s Trust Registration Service (TRS)

Since September 2022 the vast majority of UK Trusts are required to register with HMRC, even if there is no tax to pay.  This requirement was originally created in line with EU regulations while the UK was still a member state, and initially only taxable trusts had to register.

This requirement was then transferred into domestic UK law and further extended to non-taxable trusts. All pre-existing trusts had to register by September 2022 and any new trusts have to register within 90 days of their creation.

The duty to register is on the trustees and non-compliance can attract a £5,000 fixed penalty for failure to register a trust, or failure to update the register within 90 days of any change (for example a change of trustees).

You can attempt to register the trust yourself via HMRC’s website, or an agent such as a solicitor or accountant can register the trust on your behalf .

  1. The Foreign Account Tax Compliance Act (FATCA)

This is a 2010 United States of America Law which can affect UK Trusts which either:

  1. Have connections with US citizens or US tax resident individuals or companies.

OR

  1. Make the majority of its income via investment activities with a discretionary manager carrying out the investments on behalf of the trustees.

You may need to consider registering with the Inland Revenue Service (IRS – The USA’s equivalent to HMRC) if your trust meets either of the above criteria. As FATCA is a complex area we would recommend that you take legal advice before doing so.

  1. The Common Reporting Standard (CRS)

CRS is a global standard for the automatic exchange of information between governments that have signed up to this standard or reporting. The UK has adopted this requirement into domestic law and some UK trusts may be required to register for CRS. The requirements are complex, but the following may serve as a starting point to consider whether your trust must register:

  1. Does your trust have non-UK citizens or tax resident individuals or companies involved? (for example people living in the Republic of Ireland, EU member states or Commonwealth Countries).

OR

  1. Make the majority of its income via investment activities with a discretionary manager carrying out the investments on behalf of the trustees.
  1. Automatic Exchange of Information (AEOI)

HMRC, as part of the UK’s international agreements with the USA for FATCA and the various countries that have adopted the CRS, have created the AEOI portal to share information with other countries.

It is a requirement under domestic UK law to register with HMRC for AEOI – this requirement runs parallel to the FATCA and CRS requirements and casts a wide net. The requirement to register for AEOI has extended in December 2025 to cover many trusts which were previously exempt from registration. You may recently have received a letter from your advisor asking you to complete an AEOI registration for your trust. Again we would recommend that you take legal advice to determine if you need to register.

For more information about these services, please contact Nikolai Klein at WBW Solicitors in Exeter on 01392 260146 or email nikolaiklein@wbw.co.uk.

WBW Solicitors has offices in Axminster, Bovey Tracey, Brixham, Exeter, Exmouth, Honiton, Launceston, Newton Abbot, Paignton, Seaton, Sidmouth, and Torquay.

This article is for general information only and does not constitute legal or professional advice. Please note that the law may have changed since this article was published.