EOT’s – Trust Registration Service

HMRC announced that its Trust Registration Service (TRS) was open for non-taxable trust registrations with effect from 1 September 2021.

Historically, it may not have been necessary to register an Employee Ownership Trust (EOT) using the TRS if it was not subject to a tax liability. However, recent changes to the money laundering laws have extended the scope of the TRS registration requirement, and EOTs will now need to be registered, even if there is no tax liability.

Requirement to register

The majority of express trusts (there are some exceptions), of which EOTs will be included, will need to register using the TRS by 1 September 2022.

This registration requirement relates to EOTs which were in existence on or after 6 October 2020.

Any new EOTs created after 1 September 2022, must be registered on the TRS within 90 days of creation.

Registration obligation

The obligation to meet the above registration requirement is on the trustees. However, it is possible for the trustees to instruct an agent to complete the registration on its behalf.

What you will need

In order to register, the following will need to be provided:

• The name of the trust (see the Trust Deed)
• The date the trust was created (see the Trust Deed)
• Confirmation that the trust is an express trust
• Details about any UK land or property the trust has purchased

As the trustee of the EOT is a sole organisation, this will be nominated as the ‘lead trustee’, and the following will also need to be provided in relation to the EOT company:

• Organisation name
• Organisation unique tax reference (if it has one)
• Address
• Telephone number
• Email address
• Country of residence

Details of the beneficiaries will need to be provided, but as the EOT is an employment related trust, the employment related trust beneficiaries section will be used and an approximate number of beneficiaries in the group should be provided.

Details of the shares held will also need to be provided, including:

• Share company name
• Number of shares
• Class and type of share
• Approximate value of the shares when you register the trust

If the EOT has any property or land, details of this will also need to be provided.

How to register

Before you can register, an HMRC Organisation Government Gateway user ID and password will be required (one can be created during the registration process if needed).

You will need:

• An email address (linked to the EOTs Government Gateway account)
• Your full name

RM2 are keeping an eye on these requirements and will keep you updated of any changes.

If you would like to speak to us about transitioning to an EOT contact us at enquiries@rm2.co.uk and we can arrange a call with you.