The deadline for non-taxable trusts, which are not exempt and were in existence on 06 October 2020, to register with the HMRC Trust Registration Service is 01 September 2022 (this will include most asset owning unincorporated clubs). Other newly created trusts will have until then or 90 days after creation if later to register.
Following discussions between the RYA and HMRC, a need has been recognised to address the lack of clarification on the requirement to register for unincorporated sports clubs. As a result, HMRC has updated its TRS manual with clarifications and additions to several pages, including a new section for unincorporated associations at TRSM23060 which clubs may find helpful.
The RYA are aware that a number of affiliated clubs have been incorrectly advised via the HMRC helpline that they are not required to register with the TRS. This has unsurprisingly caused confusion, particularly as it is in direct contradiction to RYA Guidance. It is important to reiterate that unincorporated associations, where assets are held by virtue of a trust arrangement (e.g. freehold or leasehold land held in the name of trustees for the benefit of the club as a whole), are required to register, unless any exclusions from registration apply. HMRC has assured the RYA that they are committed to ensuring its helpline staff are sharing the correct advice to unincorporated associations and will be directing them to the recently updated guidance at TRSM23060.
Non-taxable trusts are not required to provide details or valuations of trust assets at the point of registration. This means that unincorporated associations structured as bare trusts do not need to provide asset valuations, because bare trusts cannot be taxable for TRS purposes (see ‘Bare trusts’ at TRSM10030).
Unincorporated clubs that have not registered for TRS should urgently consider registration. Details of the information required can be found in HMRC’s guidance at TRSM32000 and on the below pages:
Read the RYA Guidance on the TRS for affiliated clubs.
If you are part of an affiliated club and have any questions regarding this, please contact the RYA Legal Team: legal@rya.org.uk.
