The trusts register, which will sit alongside the UK’s existing company beneficial ownership register, has a deadline for trustees to register new express trusts with it by 5 October this year, and by 31 January 2018 for existing trusts.
HMRC defines an express trust as an arrangement where there is a clear intention to create a trust, usually created by a written document as a trust deed.
This tightening of the net around tax schemes involving trusts forms part of the UK government regulations implementing the European Union’s Fourth Money Laundering Directive, which came into effect on 26 June.
The directive specifically identifies high-risk businesses as needing to register, defining them as “operating in jurisdictions that have weak anti-money laundering systems”.
Scottish limited partnerships are also now covered by the regulations.
Non-listed companies impacted
Zia Ullah, partner, at law firm Eversheds Sutherland, said the new regulations bring into effect the UK’s pre-Brexit obligations to implement the requirements of this fourth money laundering directive.
“One immediate difference between the new regulations and the existing 2007 money laundering regulations, is that non-listed companies now have a specific obligation which they must comply with,” he said.
Economic secretary to the Treasury, Stephen Barclay, said: “These new rules will tighten our defences, protect the integrity of our financial system and help protect the British public from terror attacks and criminal activities.”
In April, a first-of-its-kind public beneficial ownership register of overseas companies that own UK property was being pushed forward by the UK government despite concerns that the information should not be made freely available.
