The Fourth EU Money Laundering Directive (4MLD) was the reason for HMRC introducing the Trust Registration Service which broadly requires all trusts with tax liabilities to register with HMRC.

The new Directive will bring into its scope all UK express trusts not just those with UK tax implications and also non-EU resident trusts which own UK land or property or which have a “business relationship” with an entity in the UK such as solicitors, accountant or bank.

The term ‘express trust’ means a trust that was expressly/deliberately created by a settlor as opposed to being set up through a court order. The onus will be on the trustees and their agents to determine whether the trust is an express trust or not. The government has issued examples of the categories of UK trusts likely to have to register to include discretionary trusts, interest in possession trusts, many types of bare trusts, charitable trusts and employee ownership trusts.

Public access will also be available to the trust register to anyone who has a legitimate interest. There is no de minimis thresholds or exemptions provided.

For unregistered trusts already in existence on 10 March 2020 the proposed by government deadline for registration is 31 March 2021. For trusts created on or after 1 April 2020 the government is proposing that they trust should be registered within 30 days of its creation and this 30 day deadline is also to be used for any amendments to be made to the TRS data once the availability to do so is there.

The practical difficulty for agents will be in helping their clients identify the trusts they are involved in that the trustees will have to register for the first time. For example life policies written in trust, trusts owning a single property where the beneficiary lives, etc. Many clients will not have advised their agent of their interest in such trusts if no tax liabilities have previously arisen.

More detailed guidance can be found here.

HMRC has issued a last-minute update to its guidance stating that it will not be sending out confirmation emails on receipt of Making Tax Digital for VAT submissions

The personal tax account (PTA) is effectively Making Tax Digital for individuals. Ultimately, HMRC’s intention is to develop a full range of services to allow taxpayers to self-serve without having to contact HMRC by phone or post.

For more information, please click on the article title.

To open a Personal Tax Account (PTA) click here.

The advisory fuel rates apply from 1 June 2019 have increased by 1p per mile in most categories reflecting the increase in petrol and diesel prices over the last quarter. The previous rates, effective March 2019, can be used for up to one month from the date the new rates apply.

The rates only apply in the following circumstances:

• reimburse employees for business travel in their company cars; or
• require employees to repay the cost of fuel used for private travel.

These rates cannot be used in any other circumstances. If the rates are used, it is not necessary to apply for a dispensation to cover the payments made.

The advisory electricity rate for fully electric cars is 4p per mile. Electricity is not a fuel for car fuel benefit purposes.

When employees are reimbursed for business travel in their company cars, HMRC will accept there is no taxable profit and no Class 1A national Insurance to pay.

Advisory fuel rates from 1 June 2019

Hybrid cars are treated as either petrol or diesel cars for this purpose.

HMRC reviews rates quarterly on 1 March, 1 June, 1 September and 1 December.

To view the HMRC web site click here.

1. A CGT return will be required to be submitted within 30 days of completion and the Capital Gains Tax (CGT) paid; and
2. If  the  property being sold is residential and has been your Principal Private Residence (PPR), the reliefs currently available are significantly reducing.