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When you need to tell HMRC about a trust

You should tell HMRC as soon as the trust is created if you expect a new trust to:

• receive income
• make chargeable capital gains (profits) from the sale of assets - such as shares, buildings or land - within the next tax year

If an existing trust starts receiving income or making chargeable gains, you need to notify HMRC by 5 October following the end of the tax year (5 April).

There is no need to tell HMRC if a trust is not going to receive any income or make any chargeable gains.

If you notify HMRC about a trust they'll send you form SA900 'Trust and Estate Tax Return' - soon after the end of the tax year (5 April).

Whose responsibility is it to notify HMRC?

The trustees are responsible for notifying HMRC if a trust has been set up that may receive income or make chargeable gains.

The only exception to this is a bare trust, where the beneficiary has the right to income and capital of the trust. In the case of bare trusts, the beneficiaries of the trust must declare any income or capital gains on their own personal tax returns.

• Bare trusts

Get professional help for your trust

Understanding trusts can be difficult so you may want to work with a solicitor or tax adviser. Remember though that the trustee is still legally responsible for the trust's tax affairs. You'll find some links below to professional organisations - although not all professionals are registered with them.

If you want HMRC to communicate with your agent or professional representative on Income Tax and Capital Gains Tax matters, you'll need to fill in form 64-8. Follow the link below to find out more about completing form 64-8.

If you want HMRC to communicate with your agent or professional representative on Inheritance Tax issues you'll need to enter their details on form IHT100.

• Find a solicitor - the Law Society of England and Wales Opens new window

• Find a solicitor - the Law Society of Northern Ireland Opens new window

• Find a solicitor - the Law Society of Scotland Opens new window

• Help from the Society of Trust and Estate Practitioners (STEP) Opens new window

How to notify HMRC

There are two ways of notifying HMRC.

You can tell them that a trust has been set up by filling in form 41G (Trust) and sending it to HMRC. Or you can send them a letter. This must contain all of the information that would have been included on form 41G (Trust), including:

• the name of the trust
• the names and addresses of all of the trustees
• the contact details of any professional agent, or a trustee’s telephone number if there is no professional agent
• whether the trust is governed by UK law, Scots law or another country’s law
• whether the trust is employment related
• whether the trust is for a vulnerable beneficiary
• details of how the trust was created - for example this could be the deceased person’s details if the trust is created by a will, or a settlor’s details for a trust created during their lifetime
• the date the trust started
• whether the trust was created by a Deed of Variation or family arrangement
  

Whether you're filling in the form or sending a letter you should also give details of all of the assets in the trust. For land or buildings, these details should include the full address. For shares, you should include the number and class of shares, and the company’s registration number.

You don’t need to send copies of any trust deeds unless HMRC asks you to.

• Contact HMRC Trusts & Estates

• Form 41G (Trust) Opens new window

Information you’ll receive after notifying HMRC

Once you've notified HMRC, you'll receive a Unique Taxpayer Reference (UTR) for the trust. This is a reference allocated when registering to pay tax under Self Assessment. You will need this reference number each time you contact HMRC.

A Trust and Estate Tax Return will be issued for the first tax year when income has been received or gains have been made by the trust.

HMRC will no longer issue a Trust and Estate Tax Return in the future if either of the following applies:

• the latest return shows that there is no trust income or chargeable capital gains
• you contact HMRC to tell them that a trust is unlikely to receive income or gains in the foreseeable future

Read more about this in the guide 'Reporting trust changes and events to HMRC' by following the link below.

If you receive a tax return as a trustee you're legally obliged to complete and return it to HMRC on time. This applies even if no tax is due.

• Completing the Trust and Estate Tax Return

• Reporting trust changes and events to HMRC

Notifying HMRC Inheritance Tax about your trust

The HMRC business area that deals with Inheritance Tax doesn't need to know when a new trust is set up. However, they do need to know when Inheritance Tax is due on a trust. This may be whenever:

• assets are put into a trust
• assets are taken out of a trust
• a trust passes a ten-year anniversary
  

• Trusts and Inheritance Tax

When the trustees are resident overseas

A trust that has trustees overseas can be a ‘non-resident’ trust.

• Non-resident trusts

More useful links

• Completing form 64-8 Opens new window

• IHT100 - Inheritance Tax Account Opens new window

Useful contacts

• Contact HMRC Trusts & Estates