Quarterly Pensions Update - September 2017

(On the) GrapeVine: GDPR and its impact on Scheme Trustees

What should Trustees do?

What should Trustees not do?

Only trustees are impacted by GDPR This is incorrect.

GDPR impacts on all individuals who are responsible for processing data which includes both trustees and their advisors as data processors.

Members have a right to be forgotten

This is incorrect. Individuals only have a right to be forgotten in exceptional circumstances.

As we act as scheme trustees and the scheme's assets provide benefits for our members we will not be subject to the maximum fine should we breach GDPR

This is incorrect. The Information Commissioner has previously held trustees personally liable which has resulted in their personal assets being at risk

HMRC'S additional requirements for trustees

What is a Relevant Trust? at least one UK resident trustee and where the "settler" was domiciled in the UK either at the time the trust was established or when the settler added funds to the trust; oral trustees are resident in the UK.

What are the additional requirements for Trustees?

Duty to maintain records.

Trustees must ensure that they hold and maintain up-to-date written records of all beneficial owners of the trust i.e. beneficiary's name, date of birth, National Insurance number, and role in relation to the trust. The trustees must also include within their records, the full details of the advisers to the trust (i.e. legal advisers, financial or tax advisers) together with the trustees' contact details.

Duty to disclose information to HMRCA somewhat onerous duty is the requirement for trustees to provide HMRC with information about any 'taxable relevant trust' and each of its beneficiaries.

A taxable relevant trust is a relevant trust that is liable in any given tax year for certain taxes on its assets or income.

The above information must be provided to HMRC prior to 31 January 2018 or any subsequent 31 January after the tax year when the trustees first become liable to pay any of these taxes.

The trustees must also ensure that in any subsequent 31 January after any tax year when they became liable to pay any taxes they must update the information previously provided to HMRC or confirm that there has been no change to the information.

Duty to disclose beneficial ownership

In circumstances where a trustee enters into a 'relevant transaction' or where a trustee creates a business relationship with a 'relevant person' on behalf of the trust, the relevant person must be informed by the trustee that he is acting in his capacity as a trustee and must provide details of the beneficial owners of the trust. In cases where there is a change with the beneficial owners, then the trustee must inform the relevant person of the same within 14 days of becoming aware of the change

What happens if the Trustees do not comply?

Next Steps

The content of this page is a summary of the law in force at the date of publication and is not exhaustive, nor does it contain definitive advice. Specialist legal advice should be sought in relation to any queries that may arise.