Impact assessment

Expansion of the Trust Registration Service

Published 6 October 2022

Project objectives

In July 2017, HMRC introduced the Money Laundering Regulations (MLRs), one provision of which set up the Trust Registration Service (TRS), a register of all trusts with a UK tax liability. TRS is intended to enhance the transparency of trusts in order to counter money laundering and terrorist financing.

In 2020, the MLRs were amended to enhance transparency further. The changes include the expansion of the TRS to include all UK express trusts (rather than just those paying tax) as well as some non-EU trusts under certain circumstances, and provisions requiring HMRC to share certain data from the TRS on a limited basis. A further amendment to the MLRs came into force on 9 March 2022, providing trustees with an extension to the deadline for registration and making some other minor amendments. Trustees then had until 1 September 2022 to register their trusts.

The customer base will stay the same as it was with the first iteration of TRS, including individuals, agents and third parties. However, the volumes will greatly increase as more customers will be required to register. For non-taxable trusts, it is believed that around 80% of the customer group are unrepresented ‘lay’ individuals, with the remaining 20% of the customer group being represented by agents. For taxable trusts, the opposite is the case.

This screening equality impact assessment relates to the delivery of the service.

Customer groups affected

Trustees

Agents

What customers will need to do

What customers need to do as a result of the change

The customer will need to register the details of their trust, including the trustees, settlor and beneficiary details, on the TRS.

How customers will access this service.

This is an HMRC microservice which is accessed via GOV.UK.

When customers need to do this

The service has been available to all since 1 September 2021. Following an amendment to the relevant regulations which came into force on 9 March 2022, customers have had until 1 September 2022 to register.

Assessing the impact

We assessed the equality impacts on all the protected characteristic groups in line with the Equality Act and Public Sector Equality Duty and section 75 of the Northern Ireland Act:

• racial groups
• sex
• gender reassignment
• sexual orientation
• pregnancy and maternity
• marriage and civil partnership
• people with dependents and those without
• political opinion (in Northern Ireland only)

There is no evidence to suggest any specific impacts on those customers within any of the protected characteristic groups listed above.

Disabled

Impact on customers

Consideration should be given to those customers who use screen readers to access digital content.

Consideration should be given to potential accessibility issues for customers within this protected characteristic group who will not be able to defer responsibility for applying for the grant to an agent.

Proposed mitigation

The services must be in line with HMRC, Home Office and Government Digital Service (GDS) usability and accessibility guidelines:

• HMRC provides additional assistance for customers who are deaf or hearing impaired, blind or partially sighted
• all GOV.UK web content adheres to national and international standards such as W3C
• HMRC offers Extra Support Team services which can be accessed by those customers who cannot, for whatever reason, interact with HMRC digitally or who need additional support and reassurance
• clear guidance to help people via GOV.UK is provided and regularly updated; access to call centres, webchats, minicom, translation to provide direct support

Age

Impact on customers

There is no evidence to suggest any specific impacts on those customers within this protected characteristic group; although consideration has been given regarding impact on older generation customers, who may be more hesitant to engage digitally (although it is recognised this may not be the case for all those in the older generation population).

Proposed mitigation

HMRC offers Extra Support Team services which can be accessed by those customers who cannot, for whatever reason, interact with HMRC digitally or who need additional support and reassurance

Religion or belief

Impact on customers

Some religious groups, such as the Plymouth Brethren, follow rules related to computer use that may affect access to digital services.

Proposed mitigation

An individual will be required to use an intermediary to submit a declaration on their behalf if their belief restricts them from doing so.

People who use different languages (including Welsh Language and British Sign Language)

Impact on customers

Trusts Registration customers consist of diverse people whose first language may not be English, including Welsh speaking customers.

Proposed mitigation

Mitigation:

• currently TRS forms and communications can be provided in Welsh and any letters, online services or contact with the customer can be provided in Welsh
• the TRS and supporting GOV.UK guidance has been translated to Welsh. A further translation will then be made following 5MLD delivery
• HMRC is also working with groups such as the Royal Association for the Deaf (RAD) to co-develop support material for deaf people
• for any customers whose first language is not English, alternative arrangements can be made for friends and family to interpret or speak on a customer’s behalf

Opportunities to promote equalities

We have considered opportunities to promote equalities and good relations between people in each of the protected characteristic groups and those outside of that group.

None have been identified within the scope of this project.

A full equality impact assessment is not recommended.