HMRC have now issued details of late filing penalties in respect of the new online trust registration service.

The deadline for Registering existing trusts under the online registration service has now passed and HMRC have confirmed how the late filing penalty regime will apply:

  • Where registration is made up to three months from the due date the penalty will be £100.
  • Where registration is made three to six months after the due date the penalty will be £200.
  • Penalties will be tax-geared at 5% of the tax liability paid by the trust in the relevant year (or £300 whichever is greater) if the registration is over 6 months late.
    • Tax liability here includes IHT, SDLT, LBTT and SDRT as well as income tax and capital gains tax.

HMRC have said that they will not automatically charge penalties for late returns.  Instead they will take a pragmatic and risk-based approach to charging penalties, particularly where it is clear that trustees or their agents have made every reasonable effort to meet their obligations under the regulations. They will take into account that this is the first year in which trustees and agents have had to meet the registration obligations.

Those who have outstanding trust registrations are urged to complete these as soon as possible. Going forward the deadline for registration is 5 October following the tax year in which the trust was created.


UK Trusts


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