Tax tip: Unincorporated clubs and TRS

Advisers will be aware of the need for most trusts (other than excluded trusts) to register on the trust registration service (TRS).

The implications of not registering are that HMRC might take enforcement action which is likely to result in the trustees experiencing difficulties in administering the trust. This is because financial organisations – such as banks insurance companies and investment houses – known as ‘obliged entities’ will not deal with trusts that are not registered when they should be.

It may come as a surprise to discover that persons authorised to deal with the affairs of unincorporated clubs and associations – including many sports clubs – that own property and other assets may be regarded as trustees and may be required to register the club or association as a trust on the TRS. This is on the basis that the authorised officials will be dealing with property owned by the...