The Trust Registration Service (‘TRS’) has been in existence since 2017. Since the implementation of the 5th Anti-Money Laundering Directive, there is now a requirement for all express trusts to be registered on the service.
On 17 May 2021, HMRC published its TRS Manual to provide guidance as to the types of trusts that are required to be registered on the TRS. However, despite the manual’s publication, uncertainty arose as to whether trusts holding life insurance policies with a surrender value were required to be registered.
HMRC, therefore, has consulted on the interpretation of the Money Laundering, Terrorist Financing and Transfer of Funds Regulations 2017 (‘the 2017 Regulations’) in regard to the TRS. As a result, HMRC has published a statement which confirms that the 2017 Regulations can be properly interpretated as including trusts holding policies that have surrender values, however, that these trusts are not required to be registered on the TRS until the policy has actually been surrendered. The TRS manual will be updated to confirm this position in its next iteration.
For more information on this article, please contact Elaine Morgan on 01604 463120 and Alan Taylor on 01223 532740.