TRSM10030 - Introduction to the Trust Registration Service: contents: common types of trusts and interaction with the register
Source: gov.uk (2025-04-07)


The following is an alphabetical list of common types of trusts, stating whether that type of trust is likely to be required to register on the Trust Registration Service (TRS).

This list is designed to give a general overview only. Please refer to TRSM20000 (https://www.gov.uk/hmrc-internal-manuals/trust-registration-service-manual/trsm20000) for full guidance on the specific conditions whereby a particular trust may be required to register.

This list is not exhaustive and the types of trust are not mutually exclusive – many trusts will meet the definition for more than one type of trust. For example, many of the specific types of trusts in this list would also meet the definition of an ‘express trust’ (see TRSM21030 (https://www.gov.uk/hmrc-internal-manuals/trust-registration-service-manual/trsm21030)).

Bare trust

Assets in a bare trust are held in the name of a trustee. However, the beneficiary has the right to all of the capital and income of the trust at any time if they’re 18 or over (or 16 or over in Scotland). This means the assets donated by the settlor will always go directly to the intended beneficiary. See TSEM1563 for further information on bare trusts.

Trustees of a bare trust are often referred to as ‘nominees’, especially if the assets held by the nominee are shares in a limited company.

There is no specific exclusion from registration for bare trusts. In general, if a bare trust is an express trust it should register on TRS. However, there are several exclusions that may apply to common bare trust arrangements. See TRSM23000 (https://www.gov.uk/hmrc-internal-manuals/trust-registration-service-manual/trsm23000) for more information on the trusts excluded from registration as a registrable express trust.

Bare trusts are not usually required to register for taxable purposes, because any UK tax liability is incurred by the beneficiaries rather than the trustees. However, where a new lease is granted to a person as a bare trustee, they are treated as the purchaser for Stamp Duty Land Tax (SDLT) purposes (Schedule 16 para 3(3) Finance Act 2003 (https://www.legislation.gov.uk/ukpga/2003/14/schedule/16)) and the SDLT liability lies with the trustee. In this case the trustees would therefore be liable for tax and the trust would be registrable on TRS.

Bereaved minor trust and 18-to-25 trust

These are trusts for the benefit of a bereaved child under 18 or, in the case of an 18-to-25 trust, for a bereaved person under 25. These trusts are usually set up under the will of a deceased parent. They are used as a means for a parent to pass assets to a child whilst (for 18-to-25 trusts) being able to specify the age at which the child becomes absolutely entitled to the whole of the assets.

These trusts have specific meaning within s71A and s71D of the Inheritance Tax Act 1984.

Bereaved minor trusts and 18-to-25 trusts set up under a will do not have to register on TRS as registrable express trusts (see TRSM23020 (https://www.gov.uk/hmrc-internal-manuals/trust-registration-service-manual/trsm23020)), but may have to register for taxable purposes if they have a UK tax liability (see TRSM25000 (https://www.gov.uk/hmrc-internal-manuals/trust-registration-service-manual/trsm25000)).

Bereaved minor trusts may also arise in England and Wales through the intestacy of the deceased parent. Trusts set up in those cases are not express trusts and therefore not required to register unless they have a UK tax liability.

Blind trust

This is a trust where the beneficiaries have no knowledge of how the trustees are managing the assets held by the trust. Blind trusts are often used by high-profile persons to avoid conflicts of interest arising out of their role in relation to their investments.

There is no specific exclusion from registration for blind trusts. Blind trusts are typically structured as discretionary trusts and if so would follow the registration consequences that apply to discretionary trusts (see below).

Charitable trust

Trusts that are registered as a charity in any part of the UK are not required to register on TRS – see TRSM23060 (https://www.gov.uk/hmrc-internal-manuals/trust-registration-service-manual/trsm23060).

Child Trust Funds

A Child Trust Fund is a type of tax-free savings account for children. Child Trust Funds were replaced by Junior ISA accounts in 2011.

Child Trust Funds and Junior ISAs are not trusts and therefore are not required to register on TRS.

Disabled person or persons trust

This is a trust set up for the benefit of a disabled person or persons. These trusts do not have to register on TRS as registrable express trusts (see TRSM23080 (https://www.gov.uk/hmrc-internal-manuals/trust-registration-service-manual/trsm23080)), but may have to register for taxable purposes if they have a UK tax liability (see TRSM25000 (https://www.gov.uk/hmrc-internal-manuals/trust-registration-service-manual/trsm25000)).

Discretionary trust

These are where the trustees have discretion to make decisions about how to use the capital and income of the trust.

There is no specific exclusion from registration for discretionary trusts. In general, discretionary trusts should register on TRS. However, there are several exclusions that could apply, depending on the terms and use of the trust (see TRSM23000 (https://www.gov.uk/hmrc-internal-manuals/trust-registration-service-manual/trsm23000) onwards).

Regardless of the above, the trust may have to register for taxable purposes if it has a UK tax liability (see TRSM25000 (https://www.gov.uk/hmrc-internal-manuals/trust-registration-service-manual/trsm25000)).

Employee benefit trust (EBT)

An employee benefit trust (EBT) is a type of trust (usually a discretionary trust) set up by an employer for the benefit of their employees. In general an employer sets up an EBT as a vehicle used in a scheme to reward, and motivate employees. The benefits may be pensions, sick pay, a share of profits, shares or almost anything the employer chooses.

There is no specific exclusion from registration for EBTs. In general, EBTs should register on TRS, unless the particular circumstances mean that one or more of the exclusions from registration set out at TRSM23000 (https://www.gov.uk/hmrc-internal-manuals/trust-registration-service-manual/trsm23000) applies.

Express trust

An express trust is a trust created deliberately by a settlor, usually (but not always) in the form of a document such as a written deed or declaration of trust. See TRSM21030 (https://www.gov.uk/hmrc-internal-manuals/trust-registration-service-manual/trsm21030) for further information.

Most trusts are express trusts, including most of the other types of trusts included in this list. The registration consequences will depend on what type of trust it is.

Trusts that are not express trusts (see statutory trusts below) are not required to register on TRS as registrable express trusts but may have to register for taxable purposes if they have a UK tax liability (see TRSM25000 (https://www.gov.uk/hmrc-internal-manuals/trust-registration-service-manual/trsm25000)).

Interest in possession trusts and liferent trusts

An interest in possession trust is a trust where the trustees must pass on all trust income to the beneficiary as it arises (less any expenses), or where the beneficiary has a right to use the trust property (for example, to occupy a house). The beneficiary is referred to as having an ‘interest in possession’ in the income of the trust or in the trust property.

In some cases, the beneficiary has the interest in possession for a fixed period, but usually the beneficiary has the life interest for the remainder of their life. In such cases the beneficiary is referred to as the ‘life tenant’ and the trust may be referred to as a ‘life interest trust’.

In Scotland, the equivalent terms are ‘liferenter/liferentrix’ and ‘liferent trust’. There are two types of liferent recognised in Scotland: proper liferents and trust (or improper) liferents.

A proper liferent is a distinct feature of Scots land law whereby the title to land or property is owned simultaneously by the “liferenter” (who has the use of the property during his/her lifetime) and a “fiar” who will have full ownership when the liferent terminates. The rights of the liferenter and the fiar are registered against the property. There are no trustees. Whilst a proper liferent is treated like a trust for certain tax purposes (for example Inheritance Tax), it is not a trust and there is no requirement for a proper liferent to register on TRS.

A trust or improper liferent (or ‘liferent trust’) is established by a settlor or granter declaring a trust in a trust document or deed, appointing trustees and transferring property to them. Liferent trusts are express trusts.

Interest in possession trusts, such as life interest trusts or liferent trusts, are often created by the terms of a will, giving an individual (for example, a surviving spouse or civil partner) the right to benefit from the deceased’s assets for their lifetime, with the assets then passing under the terms of the deceased’s will to a different individual (for example, a surviving child).

There is no specific exclusion from registration for express trusts that are interest in possession trusts. However, there are several exclusions that could apply, depending on the terms and use of the trust (See TRSM23000 (https://www.gov.uk/hmrc-internal-manuals/trust-registration-service-manual/trsm23000) onwards). In particular, an interest in possession trust created by will is excluded from registration for a period of two years from the date of death (see TRSM23020 (https://www.gov.uk/hmrc-internal-manuals/trust-registration-service-manual/trsm23020)).

However regardless of the above, the trust may have to register for taxable purposes if it has a UK tax liability (see TRSM25000 (https://www.gov.uk/hmrc-internal-manuals/trust-registration-service-manual/trsm25000)).

Mixed trusts

Some trusts are a combination of more than one type of trust. The trust must register on TRS if any part of the trust is required to register under the Money Laundering Regulations as a registrable express trust.

The trust may also have to register for taxable purposes if it has a UK tax liability (see TRSM25000 (https://www.gov.uk/hmrc-internal-manuals/trust-registration-service-manual/trsm25000)).

Non-UK resident trusts

This is a trust where the trustees are not resident in the UK for tax purposes, see TRSM21020 (https://www.gov.uk/hmrc-internal-manuals/trust-registration-service-manual/trsm21020). In general, non-UK trusts do not have to register on TRS, however they do have to register if they acquire UK land or, in some circumstances, enter into a business relationship with a UK business (see TRSM22020 (https://www.gov.uk/hmrc-internal-manuals/trust-registration-service-manual/trsm22020)).

However, these trusts may have to register for taxable purposes if they have a UK tax liability (see TRSM25000 (https://www.gov.uk/hmrc-internal-manuals/trust-registration-service-manual/trsm25000)).

Pilot trusts

These are trusts that are set up holding a nominal amount. They are typically set up for potential future use, when more substantial amounts will be added, but in practice they remain dormant until that time.

Trusts which hold not more than £100 and were already in existence before 6 October 2020 are not required to register. Conversely, trusts created on or after 6 October 2020, or that have funds added after that time so that the trust now holds more than £100, are required to register (see TRSM23090 (https://www.gov.uk/hmrc-internal-manuals/trust-registration-service-manual/trsm23090)).

However, these trusts may have to register for taxable purposes if they have a UK tax liability (see TRSM25000 (https://www.gov.uk/hmrc-internal-manuals/trust-registration-service-manual/trsm25000)).

Protective trusts

These are trusts set up to hold assets for the benefit of a beneficiary whilst protecting the assets in the event that certain conditions specified in the trust deed are breached (for example the beneficiary becoming bankrupt). The trust is set up as an interest in possession trust and remains so unless and until the beneficiary breaches one or more of the specified conditions. At that point the interest in possession ceases and the trust becomes a discretionary trust, thus protecting the assets from creditors or others.

There is no specific exclusion from registration for protective trusts. In general, most protective trusts are required to register. However, there are several exclusions that could apply, depending on the terms and use of the trust (see TRSM23000 (https://www.gov.uk/hmrc-internal-manuals/trust-registration-service-manual/trsm23000) onwards).

Regardless of the above, the trust may have to register for taxable purposes if it has a UK tax liability (see TRSM25000 (https://www.gov.uk/hmrc-internal-manuals/trust-registration-service-manual/trsm25000)).

Settlor-interested trusts

These are trusts of any type where the settlor or the settlor’s spouse or civil partner may benefit from the trust.

The identity of the beneficiaries does not affect whether a trust has to register on TRS. A settlor-interested trust may have to register according to the rules that apply for to that type of trust. For example, a settlor-interested trust could be an interest in possession trust or a discretionary trust.

Income arising to a settlor-interested trust is treated as the settlor’s income for tax purposes. However, s646(8) ITTIOA 2005 provides that the trustees also have a concurrent liability to that tax and therefore a settlor-interested trust is required to register for taxable purposes if it has a UK tax liability (see TRSM25000 (https://www.gov.uk/hmrc-internal-manuals/trust-registration-service-manual/trsm25000)).

Statutory trust

This is a trust set up automatically under the terms of legislation. For example, in England and Wales the laws of intestacy provide for assets to be held in trust where the deceased dies without a will and leaves a surviving spouse and children.

Statutory trusts are not express trusts and therefore do not generally have to register on TRS. However they may have to register for taxable purposes if they have a UK tax liability in order to obtain a Unique Taxpayer Reference (UTR) number (see TRSM25000 (https://www.gov.uk/hmrc-internal-manuals/trust-registration-service-manual/trsm25000)).

Sub-fund settlement

Trustees of a settlement are able to elect for a specified portion of the settled property to be treated as a separate settlement for tax purposes, known as a ‘sub-fund’. The fund to which the election applies is known as a ‘sub-fund settlement’ and the original is known as the ‘principal settlement’.

Sub-fund settlements do not need to register separately for TRS, provided that the principal settlement is registered and the trustees of the principal settlement and the sub-fund settlement are the same. This is true regardless of whether the sub-fund was created for tax purposes or any other purpose.

If the trustees of a sub-fund are different persons to the trustees of the principal settlement, then the sub-fund settlement would be required to register separately on TRS.

Unit trusts

A unit trust is a collective investment scheme created by deed where the scheme property is held on trust for the investors - see IFM10100 (https://www.gov.uk/hmrc-internal-manuals/investment-funds/ifm10100).

Authorised unit trusts (AUTs) are not required to register on TRS as registrable express trusts (see TRSM23110 (https://www.gov.uk/hmrc-internal-manuals/trust-registration-service-manual/trsm23110)) but may have to register for taxable purposes if they have a UK tax liability (see TRSM25000 (https://www.gov.uk/hmrc-internal-manuals/trust-registration-service-manual/trsm25000)).

There is no specific exclusion for unauthorised unit trusts (UUTs). Unauthorised unit trusts should register if they meet the general registration requirements set out at TRSM21010 (https://www.gov.uk/hmrc-internal-manuals/trust-registration-service-manual/trsm21010).

Will trusts

These are trusts of any type set up under the terms of the will of a deceased person. These trusts are not required to register on TRS for a period of two years from the date of death – see TRSM23020 (https://www.gov.uk/hmrc-internal-manuals/trust-registration-service-manual/trsm23020). Whether the trust needs to register after two years depends on what type of trust it is.

However, these trusts may have to register from the date of death (or the date the assets are transferred to the trust, if this happen at a later date) for taxable purposes if they have a UK tax liability (see TRSM25000 (https://www.gov.uk/hmrc-internal-manuals/trust-registration-service-manual/trsm25000)).