HSBC Life (UK) Ltd, HSBC Group’s insurance business, is supporting advisers and their clients ahead of the deadline for registering trusts with the Government’s new Trust Registration Service (TRS), on 1 September 2022.
Advisers who have written onshore investment bonds in trust for clients will find these clients are affected by the new rules, created as part of changes in anti-money laundering regulations.
HSBC Life (UK) has published information on its website Trust Registration Service and will be issuing guidance regarding the action advisers and their clients need to take to avoid potential HRMC fines in the event of failing to register with the TRS.
The new rules mean any UK express trust must register the details of their beneficial owners – the settlors, trustees, and beneficiaries – with TRS by 1 September 2022. Any trusts created after 1 September will have 90 days to register. Discretionary and absolute trusts are subject to the rules, as well as any discounted gift trust, loan trust and gift trust.
Trustees have the legal responsibility for registering the trust and need to nominate a lead trustee who will be the main point of contact with HMRC. Advisers will hold most of the information trustees need to register and HSBC Life believes their support will be invaluable in helping clients to update their records and meet the registration deadline.
Mark Lambert, Head of Onshore Bond Distribution at HSBC Life (UK) Limited, said: “Where an onshore investment bond is used for inheritance tax and intergenerational planning, trusts are an important part of the planning and solutions that advisers provide for their clients. The requirement to register with TRS must now be included as part of the process. HSBC Life is committed to supporting advisers and their clients, which is why we are highlighting the need to focus on the deadline and the support that has been prepared for advisers.”
HSBC Life’s range of solutions covered by the new regulations includes the HSBC Life Onshore Investment Bond, where it has been placed in our discounted gift trust, loan trust, gift trust, and third-party trusts that have been used in conjunction with our bond.
Information required to register trusts will include the name of the trust, details of the settlor and trustees as well as named beneficiaries and classes of beneficiaries. Trustees may also need to provide additional information such as the country of general administration of the trust, details of liability to income tax and the investment bond value at the time of the trust being registered.