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HMRC has invited views and evidence on a consultation including draft legislation covering its proposals to expand the trust registration service (TRS) to comply with the EU’s Fifth Money Laundering Directive.
In April 2019, the government held a consultation seeking views on transposing the 5th Money Laundering Directive into national law. The consultation ended on 10 June 2019 and the response was published on 23 January 2020.
The government is now holding a detailed technical consultation on extending the TRS. The consultation and draft legislation cover among other things the types of express trusts that will be required to register, data collection and sharing, and penalties. The government says that it is keen to ensure that the UK’s anti-money laundering and counter terrorist financing regime effectively deters such activity while remaining proportionate.
The consultation proposes that some trusts will out of scope for registering with the TRS, but should they become taxable then they will need to register. Examples include:
As to bare trusts, the government will consider them in the light of representations as part of this consultation.
This consultation closes on 21 February 2020 and the Tax Faculty intends to respond.