20220415-KPMG_Global-United_Kingdom_–_1_September_2022_Registration_Deadline_for_Certain_Employee_Trusts_5页_379kb

Employee Benefit Trust Registration Summary (April 15, 2022)

This report details the registration requirements for UK Employee Benefit Trusts (EBTs) under the Fifth Money Laundering Directive, with a deadline of September 1, 2022.

Key Points

• Since June 2017, EBTs with relevant UK tax liabilities (e.g., income tax, CGT, IHT) have been required to register with HM Revenue & Customs via the Trust Registration Service (TRS).
• New requirements under the directive extend registration to EBTs without UK tax liability, subject to specific conditions, by September 1, 2022.
• Registration conditions depend on factors like trustee residency, trust establishment details, and UK-related activities (e.g., acquiring UK land or holding UK assets).
• EBTs must register if they incur liabilities from sources like UK income, capital gains, inheritance tax, or Stamp Duty Reserve Tax (SDRT).
• Exceptions include trusts holding certain life insurance or retirement policies, and specific tax-advantaged share incentive plans or SAYE options, though some may still need registration due to SDRT.
• Registration deadlines vary based on trust creation and liability onset, with penalties for late registration.
• Trustees are responsible for registration and must provide complete information to HMRC upon registration; sponsors may have governance roles.
• Delays can lead to fines, and it is recommended to consult tax professionals for compliance and monitoring.