HMRC Automatic Exchange of Information Registration requirements and penalties explained

Following the International Tax Compliance (Amendment) Regulations 2025, there are significant reporting changes which will impact many UK trusts and other commonly used private wealth and ownership structures.

Up until earlier last year, most UK trusts simply had to be registered on HMRC’s online system, the Trust Registration Service (TRS). This is a register of the beneficial ownership of assets held in trust in the UK. Some trusts, for example where a beneficiary, settlor, trustee or protector lived abroad, also had to be reported either under the Common Reporting Standard (CRS) and/or the Foreign Account Tax Compliance Act (FATCA). CRS is a global standard developed by the Organisation for Economic Co-operation and Development (OECD), requiring reporting of financial account information for tax residents in participating jurisdictions. FATCA is a U.S. law requiring reporting on U.S. persons holding financial accounts outside the U.S. The purpose of these various frameworks includes enhancing the transparency of trust ownership as well as to combat tax evasion.

Under both CRS and FATCA, the concept of a “reportable person” extends beyond beneficiaries and can include settlors, trustees and protectors, where they have a relevant offshore connection. Under the new regulations, any existing Reporting Financial Institutions or Trustee‑Documented Trusts needed to be registered with HMRC by 31 December 2025 under the Automatic Exchange of Information (AEOI). This includes those that have never submitted a CRS or FATCA return because they had no reportable persons (including situations where there are no reportable beneficiaries, settlors, trustees or protectors) and regardless of whether the trust has any reportable persons in the 2025 accounting year.

Going forward, where there is a Reporting Financial Institution or Trustee‑Documented Trust, this must be registered on the AEOI by 31 January following the end of the relevant calendar year.

Registration on the AEOI is a one‑off process but is mandatory for compliance under both CRS and FATCA. There is no requirement to file nil returns if there are no reportable accounts, but registration is still required.

While the regulations are trust‑focused, their scope is broader in practice. In addition to trusts, certain other structures may also be caught by the AEOI registration requirement, including companies (such as family investment companies), some partnerships, Employee Ownership Trusts and Employee Benefit Trusts, particularly where they meet the definition of a Financial Institution and have an offshore nexus.

Failure to register will lead to penalties, which include daily accruals for ongoing non‑compliance. Penalties can reach £5,000, with additional daily charges of up to £600 per day after an assessment notice is issued.

Given the fact there has not been very much lead time, various institutions have been liaising with HMRC about the predicament this has left many trustees and institutions in. HMRC has provided the below response to the Association of Taxation Technicians (ATT):

“If you represent Financial Institutions or Trustee-Documented Trusts, please ensure they are registered by this deadline, or as soon as possible afterwards. Late registration penalties will not apply if you have a reasonable excuse for any delay in registering. If you need any support with registering, or think you will be unable to meet the deadline, please email [email protected].” 

It is not clear what HMRC would consider constitutes a “reasonable excuse”. It is therefore important to make sure any registrations of trusts and other entities caught by these regulations (as amended) are made as soon as possible.

Trustees and other reporting entities can complete the registration directly with HMRC: Register for Automatic Exchange of Information – GOV.UK

If you require advice or assistance in connection with this registration requirement, please contact our tax and trust team on [email protected] .