Trust Registration Service (TRS) and property sales

Established in 2017, with extended requirements for registration in 2020, and more reforms pending, the Trust Registration Service ("TRS") at HM Revenue & Customs is a register of beneficial interests, to provide HMRC with a clear view of trust assets in the UK and those held in some non-UK trusts.

The obligation to register interests covers property trusts, and when dealing with trust and probate sales, is especially relevant.  

As there are always separate legal and beneficial interests in property, practitioners should review these at the outset of a transaction.  

The basis premise is that if the legal owners are different to the beneficial owners, a registrable trust situation arises. Evidence of TRS registration must be obtained before the sale progresses to exchange of contracts.  The sooner this is checked, the better, to avoid unnecessary delays.

The situation can be more complex where joint owners have both died and each created a property trust in their wills, as double registration obligations apply.  

Coupled with TRS checks is ensuring the correct executors are selling the property, and the correct beneficiaries are to receive sale proceeds. Where in doubt, property practitioners must consult with private client colleagues.

Please contact Philip Askew or Tessa Bonser if you wish to discuss TRS matters and property sales affected by trusts.