UK resident or non-resident trust?

Trustees are treated as a single notional person, distinct from the individuals who make up the trustees. With that in mind, the residence status of trustees as a body under UK rules is as follows:

All trustees are resident in the United Kingdom

The trust is resident in the UK for Income Tax and Capital Gains Tax purposes.

All trustees are resident outside the UK

The trust is not resident in the UK for Income Tax and Capital Gains Tax purposes.

There is a mixture of resident and non-resident trustees acting at the same time

From 6 April 2025, the existing rules for taxing non-UK domiciled individuals ended and were replaced by rules on long term UK residency, broadly being UK resident for ten of the previous twenty tax years.  

For trusts created before 6 April 2025 and which have no property added to them on or after 6 April 2025, the trust is resident in the UK unless the settlor was:

• not resident in the UK and
• not ordinarily resident in the UK
• not domiciled in the UK

at the time the settlor made, or is treated as making, the settlement and any time when the settlor adds property to the settlement.

If the settlement arises on a settlor’s death then the settlor’s residence and domicile status are considered immediately before the death.

For trusts created on or after 6 April 2025, or pre 6 April 2025 trusts to which property is added on or after 6 April 2025,  if there are both UK resident and non resident trustees consideration will no longer be given to the settlor’s domicile when considering whether the trust is resident in the UK

HMRC: TSEM10020

These are the UK rules on trustee residence – other jurisdictions may have different rules.

For Trust Registration Service purposes the residence status of a trust is set out here.