Trust registration for farming partnerships

It is fair to say that the trust registration service (TRS) guidance has caused a lot of controversy and confusion with regard to partnership property.

The matter is made more complicated by the fact that many farm advisers do not fully understand the legal concepts of partnership property beneficial interests express trusts and the land registry entries not corresponding with these concepts.

Add to this the emotional burden of guidance that states that the existence of a partnership agreement showing the declaration of trust dictates registration. There were perhaps initial outcries regarding the apparent discrimination of those disciplined farming partnerships with a well written partnership agreement.

Advantages of registration

Many farming partnerships did not meet the 1 September 2022 deadline for registration and could face penalties although HMRC says that it recognises the need to register a trust is new and unfamiliar for many trustees...