TRSM24010 - Types of trust that need to be registered: non-UK trusts entering a business relationship: contents: introduction and basic definition

Trustees of non-UK express trusts with at least one UK resident trustee must register when they enter into a Business Relationship with a UK Relevant Person, unless the trust is specifically excluded from registration under one of the exclusions listed at TRSM23000.

Trusts required to register as a result of entering into a Business Relationship must register on TRS within 90 days of the commencement of the Business Relationship. See TRSM40010.

What is a Business Relationship?

The term ‘Business Relationship’ has a specific meaning for the Trust Registration Service (TRS).

A Business Relationship is:

  • a business, professional or commercial relationship between the trustees and a UK “relevant person”; (See TRSM24020)
  • that is expected by the Relevant Person, at the time the relationship commences, to have an element of duration (See TRSM24030)

(Regulation 4 of the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017).

When does Business Relationship affect the requirement to register on TRS?

  • The Business Relationship condition only applies to non-UK trusts with at least one UK-resident trustee.
  • UK trusts do not need to consider the ‘Business Relationship’ condition set out in this section. Trustees of UK trusts do not have to consider Business Relationships in determining the need to register. See TRSM22020 for the registration conditions that apply to UK trusts.
  • Non-UK trusts with no UK resident trustees also do not need to consider the ‘Business Relationship’ condition set out in this chapter. Trustees of non-UK trusts with no UK resident trustees do not need to consider Business Relationships in determining the need to register. Non-UK trusts with no UK-resident trustees are only required to register if the trustees acquire land or property in the UK or have a liability to UK taxation: see TRSM22020.

TRSM24040 contains a step-by-step guide that trustees can use to determine whether the Business Relationship applies to their trust.

Existing Business Relationships

Business relationships that were already in existence before the Money Laundering Regulations came into force on 6 October 2020 do not bring a trust into scope of registration. However, if the trustees were subsequently to enter into a new Business Relationship with a UK Relevant Person then the requirement for registration should be considered in the usual way.

If the trustees of a trust entered into a Business Relationship prior to 6 October 2020 and there is a subsequent change to the appointment of any or all of the trustees, the new trustees are not treated as entering into a new Business Relationship with that Relevant Person.