On 16 July 2020, HMRC published its responses to its technical consultation of the Fifth Money Laundering Directive in relation to the UK Trust Registration Service (TRS). The response document which can be found here provides some welcome news for offshore trustees entering into a business relationship in the UK as it states that they will not have to register the trust on the TRS unless there is at least one UK resident trustee. This means that non-UK trusts will not need to register on the TRS if their only link with the UK is through a business relationship with a UK based adviser.
HMRC also confirms that the following types of trusts will be exempt from registration on the TRS:
There is still a requirement for non-UK trusts acquiring UK land and property to register on the TRS within the required time limits. These trusts will be on the register but will not be subject to the third-party data sharing provisions unless they are required to register under one of the other categories.
It is also important to note that the obligation for non-UK trusts with a UK tax liability to register on the TRS under the current process in place for the Fourth Money Laundering Directive remains unchanged.