Understanding the TRS Question on Property Added Since October 2020
When registering a trust with the Trust Registration Service (TRS), one question regularly causes uncertainty for trustees:
Has any property been added to the trust since October 2020?
This is a common stumbling block during the trust registration process. Understanding why HMRC asks this question — and what trustees are expected to consider — can help avoid confusion and ensure compliance.
October 2020: The Key Change in the Rules
The critical date is 6 October 2020.
Before this point, only taxable trusts generally needed to register on the TRS. However, from 6 October 2020, the rules expanded significantly, bringing most express trusts within the registration regime.
As a result, trustees must carefully consider trust activity occurring after this date.
Why Does Added Property Matter?
Adding assets or property to a trust after October 2020 can affect whether a trust becomes registerable.
For example, a trust that was previously outside the registration rules — or benefited from an exemption — may become subject to TRS registration if assets are introduced after 6 October 2020.
A common example is the £10 pilot trust established before 2020. While such a trust may initially have been outside scope, subsequent additions of property following October 2020 are likely to bring it within the registration requirements.
The Focus Is on When Property Is “Settled”
A key point to remember is that HMRC’s focus is not simply on when the trust itself was created.
Instead, attention is given to when assets are settled into the trust.
This means a trust established before 2020 can still fall within the TRS regime if it receives additional funding or assets after the rules changed.
Preventing Avoidance of the Expanded Rules
The purpose behind this question is straightforward.
It helps ensure trustees cannot rely on an older, pre-2020 trust structure while introducing new value under the expanded TRS framework without triggering the relevant compliance requirements.
Trusts Where This Question Is Particularly Relevant
Trustees should pay particular attention where the arrangement involves:
- Pilot trusts (including £10 trusts)
- Will trusts that receive funding after death
- Bare or nominee arrangements
- Previously dormant trusts that later become active or funded
The Wider Objective: Transparency
The question also supports the broader policy objective behind the TRS regime — improving transparency around beneficial ownership, namely identifying who ultimately benefits from a trust arrangement.
This forms part of wider anti-money laundering (AML) compliance measures designed to increase visibility and accountability.
The Practical Takeaway
When answering the TRS question about property added since October 2020, trustees should ask themselves:
“Has the trust been materially funded or activated since 6 October 2020?”
If the answer is yes, further consideration of the trust’s registration obligations is likely required.
As always, where there is uncertainty, please just call us for an initial discussion, and we would be happy to advise you further.
