TRSM21020 - Types of trust that need to be registered: contents: introduction and definitions: contents: what is a UK Trust

Whether a trust is defined as a ‘UK Trust’ or a ‘Non-UK Trust’ for the Trust Registration Service (TRS) purposes depends on the residence status of the trustees and settlor of the trust:

If all trustees are resident in the United Kingdom:

• The trust is a UK trust for TRS purposes.

If all trustees are resident outside the United Kingdom:

• The trust is a non-UK trust for TRS purposes.

If there is a mixture of UK resident and non-resident trustees acting at the same time:

• The trust is a UK trust for TRS purposes if the settlor of the trust was resident and domiciled in the United Kingdom at the time when the trust was set up or when the settlor added funds to the trust. Otherwise, the trust is a non-UK trust.

For the above purposes a trustee or settlor is treated as resident in the United Kingdom:

• in the case of a body corporate, if it is a UK body corporate.
• in the case of an individual, if they are UK resident for the purposes of one or more of the following taxes:
  • income tax;
  • capital gains tax;
  • inheritance tax;
  • stamp duty land tax;
  • land and buildings transaction tax;
  • land transaction tax;
  • stamp duty reserve tax.

Please note that the above definition of residence applies only for TRS. See TSEM10005 for the residency rules for trusts for other purposes.

In determining whether a settlor is or was domiciled in the United Kingdom for TRS purposes, no account needs to be taken of the ‘deemed domicile’ rules that apply for tax purposes. See RDRM20010 for further guidance on the meaning of domicile.