Partner Katja Wigham, in our Commercial Property team, explains beneficial ownership of corporate structures.
The House of Commons Library has published a briefing paper Shining a light on beneficial ownership: what's happening in the UK and elsewhere? Concerns have been expressed that land bought through companies in an effort to disguise true ownership with a resulting lack of transparency may allow corruption or other crime to flourish.
UK registered companies
In an effort to combat this, the Government introduced provisions with effect from 6 April 2016 requiring UK registered companies to maintain a register of people who have significant control over the company (“PSCs”). That information must be declared to Companies House from 30 June 2016, with the company’s annual statement. Companies House’s register should therefore be complete by 29 June 2017.
Crown Dependencies and British Overseas Territories
The position in relation to companies registered in Crown Dependencies and British Overseas Territories is variable. Jersey for example has suggested that a public register about beneficial ownership could be both disproportionate and a deterrent to investment. The responses to a consultation process in the British Virgin Islands were against the proposal. Gibraltar on the other hand has indicated it is committed.
Conclusion
The Land Registry requires us to certify to that we know who our client is. We therefore identify all of our clients, including corporate clients in an effort to understand their corporate structure. Whilst the register of PSCs is welcome, we believe it should preferably be extended to Crown Dependencies and British Overseas Territories.
For further information or legal advice, please contact law@blandy.co.uk or call 0118 951 6800.
This article is intended for the use of clients and other interested parties. The information contained in it is believed to be correct at the date of publication, but it is necessarily of a brief and general nature and should not be relied upon as a substitute for specific professional advice.
