Trust Registration Rules Are Changing in 2026 – will you be ready?
Katriona McEwan · Posted on: October 6th 2025 · read
HMRC have announced proposed changes to the Trust Registration Service (TRS), following a consultation into improving the effectiveness of the Money Laundering Regulations.
The TRS acts as a central record and documents information about trusts. This information is available to law enforcement agencies to assist with their investigations.
The proposed changes by HMRC aim to target trust registration requirements, focussing more on the highest-risk trusts, whilst simplifying compliance and improving consistency. This will result in more non-UK resident trusts having to register and will provide a relaxation in the registration deadline for certain trusts that are created as a result of a death.
Proposed changes to the TRS are:
1. Non-UK Resident Express Trusts: expansion of TRS scope
Non-UK express trusts with no UK trustees that acquired UK land prior to 6 October 2020 have historically been exempt from registration, whereas those that acquired UK land on or after 6 October 2020 where required to register.
The excluded trusts will now be subject to mandatory TRS registration. HMRC confirms these trusts will also be captured by data accessibility mechanisms, meaning that, subject to the ‘legitimate interest test’ under the Money Laundering Regulations, people/organisations can request information about these trusts.
Trustees and advisors will now need to identify land interests held by non-UK trusts pre-2020 and re-assess registration obligations.
2. Bereavement-Linked Trusts: aligned registration deadline relief
Trusts which are created by the will of the deceased currently have a two-year grace period for registration. If the trust is closed within those two years it never has to register on the TRS.
However, other trusts which can arise as a result of death, such as co-ownership trusts which cease to be exempt on the death of one of the owners and when deeds of variation are executed, were registerable within 90 days of the relevant event (death or execution of the deed of variation).
Once the proposed changes come into effect, trusts arising due to death will benefit from a two-year registration grace period, aligning with the Will trust treatment.
This provides welcome relief and clarity to executors and estate practitioners in respect of their trust registration duties and deadlines.
3. Scottish Survivorship Destinations: exclusion confirmed
"Trusts created via survivorship destination under Scottish law will be officially excluded from TRS registration, acknowledging their automatic nature and low Money Laundering and Terrorist Financing risk."
"Scottish conveyancing and estate advisors need no longer assess survivorship arrangements for TRS purposes."
4. De Minimis Exemption: low-value trusts
At present, unless specifically excluded, all UK express trusts need to be registered on the TRS no matter the value of funds held. This meant pilot trusts established post 6 October 2020 would need to register despite only holding a nominal sum of money for the time being.
A new exemption is due to be brought in for trusts established post-amendment date, if all the following apply:
The trust has no UK tax liability
The trust holds no UK land/property
The Trust’s assets are valued at £10,000 or less
The Trust’s income is £5,000 or less per year
If the Trust holds non-financial assets, such as jewellery or art, this is worth £2,000 or less.
Loss of any of the qualifying condition triggers full registration obligation.
While this is a beneficial relaxation of registration requirements, advisers must maintain monitoring protocols where asset values or tax positions may breach thresholds.
5. SDRT-Linked: registrations removed
A trust which was exempt from registration as an express trust would still need to register as a taxable trust if it incurred tax liability. This included income tax, capital gains tax, inheritance tax, stamp duty land tax (or the Scottish and Welsh equivalents) and Stamp Duty Reserve Tax.
Acquisitions triggering Stamp Duty Reserve Tax (SDRT) will no longer constitute a registration trigger as a taxable trust for this purpose.
Non-UK trusts acquiring modest UK shareholdings will not automatically be registrable solely due to SDRT liability.
Implementation date
The July 2025 consultation response confirms that HMRC intends to implement the proposed changes to the Money Laundering Regulations, including those affecting the Trust Registration Service, via a Statutory Instrument later in 2025, subject to parliamentary scheduling.
No fixed commencement date is given yet, but the document states that draft legislation will be published in the coming months for technical feedback, implying that implementation could follow in early to mid-2026, depending on legislative progress.
Plan ahead for the changes
With these proposed changes to the Trust Registration Service, HMRC intends to focus compliance on higher-risk trusts while easing the reporting burden for limited exposure or low value trusts.
For many families and trustees, the main impact will be felt around older non-UK trusts with UK property, and trusts that arise when someone passes away, with the extended deadlines and more clarity.
Although the new rules are not expected to take effect until 2026, it’s sensible for trustees and advisers to start reviewing their existing trust structures now, to ensure readiness once the new rules take effect.
MHA Can Help
At MHA, we have extensive experience in trust and estate matters and can help you navigate these complex requirements to optimise your trust's tax position.
To discuss any of the issues raised in this article, please contact the author Katriona McEwan from our Trusts & Estates team, who will be happy to assist.
Alternatively please contact our private client tax team or get in touch with your local office.
