UK Trust Registration Service: wider rules for non-UK trusts holding UK land

Regulations that come into effect on 30 June significantly widen the scope of the UK’s Trust Registration Service (TRS), bringing more non-UK trusts that hold UK land within the registration regime. In the article below, Tracey Neuman and Nana Aboagye unpack these changes and provide guidance on next steps for Trustees.
 

Current requirements and proposed changes

At present, a non-UK express trust, including an unauthorised unit trust, is generally required to register with the TRS only where one of three key triggers applies:

• the trust has a liability to a relevant UK tax;

• the trust acquired UK land on or after 6 October 2020; or

• the trust enters into a new business relationship in the UK and at least one trustee is a UK resident.
   

The changes apply to:

A wider registration requirement for UK land

Under the regulations, all non-UK trusts that own UK land would be required to register with the TRS, regardless of when that land was acquired. This would extend the regime to trusts that acquired UK land before 6 October 2020 and, unlike the Register of Overseas Entities, would also capture land acquired before 1 January 1999.

The requirement applies to trusts that own UK land on 30 June 2026, with trustees having until 1 September 2027 to comply. The policy aim appears to be greater visibility of trust ownership connected to UK land, whether held directly or through wider ownership structures.

Greater access to trust information

The regulations also bring more non-UK trusts that own UK land within the TRS data-sharing rules. This means information about those trusts could be made available on request, where the applicant can demonstrate a legitimate interest, such as an active investigation connected to money laundering or terrorist financing.

That legitimate interest requirement would be waived where a trust owns a controlling interest in a non-UK or non-EU entity. Although this could raise privacy concerns, the practical impact may be limited in some cases, as UK land is often held by an underlying company rather than directly by trustees alongside a relevant company interest.
 

What trustees should consider now

The changes are another example of the compliance burden increasing in pursuit of greater transparency. For many offshore trustees, the impact could be significant, particularly where structures have not previously been within the scope of the TRS or where trustees are unfamiliar with the registration process.

Trustees of non-UK trusts holding UK land should assess whether their structures are likely to be affected, identify any registration obligations in good time and consider whether any information may become subject to disclosure under the expanded data-sharing rules.

Ocorian’s private client team will continue to monitor these proposed changes and share updates as they are confirmed. If you would like to discuss how the draft regulations may affect your structures, please contact your usual Ocorian representative or get in touch with the team.