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Welcome to this month’s Bite Sized.

For those of you who may not have seen the announcements, we have recently relocated approximately half of our partners and staff in to the building next door to our existing one at 2 Stone Buildings – so the whole firm is now accommodated within Lincoln’s Inn. The new offices make a welcome change…natural light being one and
air-conditioning!

Below are a few recent developments which have caught my eye.

HMRC launches new Trust Register

Trusts Register

The Trusts Register will provide a single point of access for trustees and their agents to register and update their records online, replacing the current paper 41G (Trust) form and the ad hoc process for trustees to notify changes in their circumstances. The new service, known as the Trusts Registration Service, will provide a single online route for trusts and estates to comply with their registration obligations. As well as implementing the requirements of the Fourth Money Laundering Directive (4MLD), the register will be in line with HMRC’s digital strategy and provide greater tax transparency going forward.

It will be an online Government register, which will apply to UK trusts. It will also apply to non UK trusts which receive income from a source in the UK or have assets in the UK on which there is a UK tax liability (this includes IT, CGT, IHT, SDLT or SDRT).

What does this mean for trustees?

Trustees will need to update the register each year that the trust generates a UK tax consequence. All trusts with a UK tax consequence will need to be registered. Also, trustees must ensure and confirm the Trust Register is accurate and up to date, guaranteeing their obligations under 4MLD are complied with. This includes those trusts that have already registered with HMRC using the 41G (Trust) form.

Any new trusts with a UK tax consequence will be required to use the registration service to obtain a unique taxpayer reference (UTR).

The register will ask for:

  • details of the trust assets including address(es) and values
  • the identity of the Settlor, trustees, protector (if any), all other persons exercising effective control over the trust (if any) and the beneficiaries or class of beneficiaries.

The information required will include:

  • name
  • date of birth
  • National Insurance (NI) number if they are UK resident – unless a minor
  • an address and passport or ID number for non-UK residents, if there is no NI number.

Worldwide Disclosure Facility changes

On 15 June 2017 HMRC announced that taxpayers with particularly complex tax affairs could extend the 90 day deadline for making a disclosure by a further 90 days.

Parliament’s Panama Papers Inquiry Committee (PANA) draft report recommendations

On 30 June 2017 the European Parliament’s Panama Papers Inquiry Committee (PANA) recommended various points within their draft report including:

  • 0% CT rate as a criteria for being moved to a blacklist
  • register of beneficial ownership, global company register and central register of bank accounts to be accessible to financial intelligence units and law enforcement bodies
  • calls on member states to stop using amnesties
  • ask for clarity on what is illegal and what is legal tax evasion and avoidance practice
  • calls for a proposed EU FATCA
  • recommends a EU Certification for tax professionals.

As we have seen before, when a committee focused on reviewing global transparency issues a ‘draft document’, not much changes when the final document is produced. It will be interesting to see how much of the recommendations eventually come to fruition.

Best wishes to all readers for July – the UK remains obsessed as to the health of Andy Murray’s hip welfare during Wimbledon!

Kind regards

Frank Strachan
Partner | Head of Tax
For Edwin Coe LLP
d: +44 (0)20 7691 4136 | e: frank.strachan@edwincoe.com

Edwin Coe LLP is a Limited Liability Partnership, registered in England & Wales (No.OC326366). The Firm is authorised and regulated by the Solicitors Regulation Authority. A list of members of the LLP is available for inspection at our registered office address: 2 Stone Buildings, Lincoln’s Inn, London, WC2A 3TH. “Partner” denotes a member of the LLP or an employee or consultant with the equivalent standing. This guide concerns the law in England and Wales and is intended for general guidance purposes only. It is essential to take specific legal advice before taking any action.

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