Trust register - 5th Anti-Money Laundering Directive (5MLD)
On 23 January 2020, the United Kingdom (UK) government launched a technical consultation and provided draft regulations in respect of the Trust Registration Service (TRS). The final regulations were laid in Parliament on 15 September 2020 and came into force on 6 October 2020.
The 5MLD removes the previous link between the TRS and taxation. All UK express trusts and some non-UK trusts (with specific UK nexus) will be required to register under the TRS unless they are specifically defined as ‘out of scope’.
The registration requirements are as follows:
- Trusts in existence at 6 October 2020 must have registered by 1 September 2022.
- Trusts created after 6 October 2020 must register within 90 days or by 1 September 2022 (whichever is later).
Higher rate threshold
The 40% higher rate threshold is 50,270 pounds sterling (GBP) in 2023/24.
The personal allowance is GBP 12,570 in 2023/24.
Since 6 April 2015, the starting rate for savings income is 0% (previously 10%), and the maximum amount of savings income that can qualify for this rate is GBP 5,000. One is not eligible for the starting rate for savings if one's other income is GBP 17,570 or more.
Tax avoidance and evasion
His Majesty's Revenue and Customs (HMRC) is focusing on tackling tax evasion, avoidance, and non-compliance. HMRC is continuing the process of creating specialist personal tax units to enquire into individual's domicile status and target serious non-compliance by trusts, pension schemes, and non-UK domiciled individuals ('non-doms'), as well as a more general extension of the customer relationship model for individuals with wealth between GBP 10 million and GBP 20 million.