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MLR 2017, Sch 3A: does a life policy trust lose excluded trust status by opening a non-interest-bearing account solely to pay premiums? UK TRS implications.

Published on: 30 April 2025

Published by a LexisNexis Private Client expert
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See Q&A: Where a trust of a life policy otherwise falls within the definition of an 'excluded trust' set out in paragraph 4 of Schedule 3A of the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017, does it lose that excluded trust status if it opens a non-interest bearing bank account in order to pay insurance premiums for the policy? It is assumed that the operation of the bank account is for no purpose other than to pay premiums

In broad terms, all UK express trusts must register with the Trust Registration Service (TRS), even where there is no UK tax charge, unless they fall within an exclusion expressly listed in the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017, SI 2017/692, Sch 3A. However, those exclusions do not operate where the trust has a UK tax liability for any period. Non-UK express trusts can also be required to register if there are links to the UK, including having trustees based in the UK, acquiring land in the UK, or entering into a business relationship with a UK business. We have not...

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