Advisers and clients need to focus on trust registration deadline to avoid risk of HRMC fines
Adviser area – If you’re a customer please visit the customer section
The time for onshore investment bonds has arrived
Advisers who have written onshore investment bonds in trust for clients will find these clients are affected by new rules, created as part of changes in anti-money laundering regulations. The new rules mean most UK express trusts must register the details of their beneficial owners – the settlors, trustees, and beneficiaries – with TRS. Any new trusts 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.
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.