During 2026, updates are expected to take effect that will change how trusts are registered with HM Revenue & Customs through the Trust Registration Service (TRS). These proposals are subject to final HMRC legislation and may change.

The changes aim to reduce administrative pressure for small, low-risk trusts while increasing transparency for structures seen as higher risk, particularly those involving overseas elements. The changes reflect a shift toward a more targeted approach to compliance across the UK.

One of the most important updates will affect non-UK resident trusts that hold UK property. Previously, only non-UK trusts that acquired UK land on or after 6 October 2020 had to register. Under the new proposals, older non-UK trusts that bought property before that date may also need to join the register.

This change expands the number of trusts that fall within the TRS and means trustees and advisers may need to review long-standing arrangements. Even where a trust has been in place for many years, it could now come within scope if it holds UK land and has not previously been required to register.

Another positive change is the extension of registration deadlines for trusts that arise after someone dies. At present, trusts created by a Will usually have a two-year grace period before registration is required. However, other types of trusts that can arise on death, such as co-ownership arrangements or certain variations to a Will, have typically been subject to a much shorter 90-day deadline.

The proposed reform would align these rules so that most death-related trusts benefit from the same two-year window. This should make things simpler for families and executors, who often need time to deal with probate and estate administration before thinking about compliance requirements.

In addition, the government has indicated that Scottish survivorship destination arrangements are likely to be excluded from Trust Registration Service requirements, recognising that these arrangements arise automatically on death and generally present a lower risk for transparency purposes.

Whether a trust must register depends on its specific structure, assets and tax status.

The changes are expected to introduce a ‘de minimis’ exemption for smaller trusts. Currently, most UK express trusts must register even if they hold only modest amounts and have no tax liability. Under the new approach, newly created trusts may not need to register if they meet strict conditions.

These conditions are likely to include having no UK tax liability, not owning UK land and keeping income and assets below certain thresholds. If a trust later grows beyond those limits, it will then need to register at that point. This should remove some unnecessary reporting for very small or administrative trusts. It is important to note that the proposed de minimis exemption is expected to apply only to new trusts created after the rules come into force. Trusts that are already registered on the Trust Registration Service will generally be required to remain registered even if they fall within the new thresholds.

Another practical simplification is the planned removal of Stamp Duty Reserve Tax (SDRT) as a trigger for registration. Previously, an SDRT charge could cause a trust to be treated as taxable for TRS purposes, even if it would otherwise be exempt. Removing this trigger should reduce the compliance burden for trusts that hold small share investments.

Alongside the TRS changes, trustees should also be aware of separate requirements under the Automatic Exchange of Information (AEOI) rules. These are not new TRS rules, but they sit alongside them and may still apply to certain trusts.

For example, some trusts classed as reporting financial institutions must register under AEOI even if they do not have reportable beneficiaries. This is usually a one-off requirement, but failure to comply may result in penalties set by HMRC.

Overall, the 2026 changes aim to create a more balanced system. Trusts that present higher risks, particularly those with overseas links or property holdings, will face broader registration requirements. At the same time, smaller and simpler trusts should benefit from clearer rules, fewer triggers for registration and longer deadlines.

Trustees should review their arrangements early to understand whether the new rules might apply and to prepare for any action needed once the changes come into force. This article provides general information only and does not constitute legal, tax or financial advice. Individuals should seek professional advice based on their personal circumstances.’

The Financial Conduct Authority does not regulate trusts, tax advice, estate planning or the Trust Registration Service. This article provides general information only and does not constitute legal, tax or financial advice. Individuals should seek professional advice based on their personal circumstances.