Trust and Estate Register Non-Compliance Penalties

Lucy Orrow Tax Accountant Essex Lambert ChapmanPosted by Lucy Orrow:

HMRC Trust and Estate Register non-compliance penalties have been released - this information taken from https://www.gov.uk/ website

Penalties

You may have to pay a penalty if you don’t:

  • register your client’s trust before the registration deadline
  • tell HMRC about any changes to your client’s information

If you don’t register or update your client’s information, and can’t show HMRC that you took reasonable steps to do so, the penalties are:

  • £100 within 3 months
  • £200 between 3 to 6 months
  • £300 or 5% of the total tax liability in the relevant year (whichever is higher) after 6 months

Penalties won’t be issued automatically and will be reviewed on a case by case basis.

We’ll also take into account that tax year 2017 to 2018 is the first year that trustees and agents have had to meet the new registration obligations.

Notification penalties

The facility to tell us about any changes to a registration is not yet available. HMRC won’t charge penalties for failure to tell us about changes until this facility becomes available.

Money laundering penalties

HMRC can also charge penalties for money laundering offences, which are more serious than administrative offences. HMRC will be consulting on the structure of these penalties later this year.

 

March 2018

Disclaimer

The views expressed in this article are the personal views of the Author and other professionals may express different views. They may not be the views of Lambert Chapman LLP. The material in the article cannot and should not be considered as exhaustive. Professional advice should be sought in connection with any of the issues contained in the article and the implementation of any actions.

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