Scottish survivorship trust exclusion has an equal-ownership condition

Trusts revoking a Scottish survivorship destination can qualify for exclusion from non-taxable Trust Registration Service (TRS) registrationGOV, but the statutory condition is narrower than simply naming a new property beneficiary. The deed or instrument must revoke the survivorship destination in common property in ScotlandLegislation and provide that, from execution, the property is held for the common owners equally and for their respective executors and assigneesLegislation.

HMRC’s property-ownership guidance now describes these Scottish arrangements alongside expanded examples of what happens to property trusts after a death. The detailed Scottish test appears in new paragraph 9B of Schedule 3A to the money laundering regulations. The amending regulations were made on 9 June 2026Legislation and bring this provision into force 21 days after that dayLegislation, on 30 June 2026Legislation.

For co-ownership trusts, the existing exclusion applies where the trustees and beneficiaries are the same persons. New paragraph 9A applies where a trustee’s death is the sole reason that the co-ownership exclusion ceases to apply. Its protection lasts while less than two years have passed since that trustee’s death. It does not provide a general two-year extension whenever trustees and beneficiaries change.

HMRC’s revised Alice and Bob example separates their lifetime co-ownership trust from the trust created by Alice’s will, which lets Bob occupy her share for life. The will-trust exclusion lasts for two years following Alice’s death. The statutory test also requires the trust to hold only property comprised in her estate on death; HMRC’s will-trust guidance says an addition from outside the estate triggers registration.

The revised Smith family example addresses death in a land trust with more than four beneficial owners. New paragraph 1A covers a trust previously excluded by virtue of section 34 of the Trustee Act 1925Legislation. A trustee’s death must be the sole reason that the legislative-trust exclusion ceases to apply. The new exclusion lasts while less than two years has passed since that deathGOV.

Trustees should distinguish each continuing property trust from any separate will trust and review whether its particular exclusion still applies. HMRC’s estate guidance gives registrable non-taxable trusts 90 days from becoming registrable. These Schedule 3A exclusions do not displace the separate registration rules for taxable relevant trustsGOV.

The property-trust exclusions are in Schedule 3A to the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017, including paragraphs 1A, 9A and 9B inserted by regulation 35 of the Money Laundering and Terrorist Financing (Amendment) Regulations 2026.