Do healthcare providers need to register their property with the Trust Registration Service?

What is the Trust Registration Service (TRS)?

The Trust Registration Service is an online register maintained by HMRC. It was introduced as part of the UK's anti-money laundering framework and requires many trusts to provide information about their trustees and beneficiaries.

Where a trust should be registered but is not, HMRC can impose penalties. As a result, it is important for healthcare providers to understand whether their property arrangements fall within the registration requirements.

Why Does This Matter to GP Practices?

Unlike a limited company, a partnership cannot own property in its own name. This means that GP surgery premises are often owned by some or all of the partners on behalf of the partnership.

Whenever land is owned jointly, the law creates a trust arrangement. The individuals named on the title deeds hold the legal ownership of the property, while those entitled to benefit from the property hold the beneficial ownership.

Because trust arrangements arise naturally in many partnership property structures, GP practices have been concerned about whether they need to register with the TRS.

When Is Registration Not Required?

Fortunately, several important exemptions apply to healthcare providers.

1. Small Partnerships with Four or Fewer Property Owners
   If up to four partners are named on the property's legal title and those same individuals are also the beneficial owners, the trust is generally exempt from registration. This is one of the most common ownership arrangements in smaller GP partnerships.
2. Partnerships with More Than Four Property Owners
   The law only allows a maximum of four individuals to be registered as legal owners of a property.
   Where there are more than four property-owning partners, the first four owners hold the property on trust for all the partners. This type of trust is specifically excluded from TRS registration.
3. Property Purchased with Partnership Funds
   In some cases, property may have been purchased using partnership funds without a formal trust document being put in place.
   Under partnership law, such property is generally treated as belonging to the partnership as a whole. As there is no express trust, there is usually nothing that needs to be registered with the TRS.
4. GP Practices as Public Authorities
   Even where a written partnership agreement or declaration of trust creates an express trust, another exemption may apply.
   GP practices providing NHS services are generally regarded as public authorities for certain legal purposes. Trusts that exist to enable or assist public authorities in carrying out their functions can be exempt from TRS registration.
   This exemption is particularly relevant to GP surgery premises that are held on trust for the benefit of the partnership.

What Should Healthcare Providers Do?

Although many healthcare property arrangements benefit from an exemption, each practice should ensure it understands how its premises are owned and whether any trust documentation is in place.

For most GP partnerships, the good news is that common property ownership structures are unlikely to require registration with the Trust Registration Service. However, practices should review their arrangements periodically, particularly when partners join, retire or when property ownership changes.

Need Advice?

Understanding property ownership and trust arrangements can be challenging, especially when managing a busy healthcare practice. Taking advice on your specific circumstances can help ensure compliance and provide reassurance that your property structure remains fit for purpose.

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If you would like advice on your practice premises, partnership agreement or Trust Registration Service obligations, please contact Pallvi Gami or Ben Willis in our Healthcare team.