Will Public Disclosure of Trust Ownership in UK Land Become a Reality?

The UK government's latest consultation, titled "Transparency of Land Ownership Involving Trusts," proposes a significant shift towards greater transparency in land ownership structures involving trusts. With a closing date of 21 February 2024, this consultation seeks to address a perceived gap in the public disclosure of trust and beneficial ownership information. This article explores the existing regimes and the potential impact of the proposed changes.

Current Regimes for Ownership Transparency:

1. People with Significant Control (PSC) Regime: Requires UK companies and LLPs to disclose beneficial owners to Companies House, making the information publicly available.
2. Trust Registration Service (TRS): UK and qualifying non-UK trusts must file information with HMRC, but this is generally not public.
3. Register of Overseas Entities (ROE): Overseas entities owning UK land must register and disclose beneficial owners with Companies House. While most information is public, some trust-related details are not.

Proposed Changes and Consultation Focus:

The government acknowledges a lack of public access to beneficial ownership information in trusts, especially regarding UK land ownership. Anticipated regulations will enable access to trust information held as part of the ROE at Companies House. The consultation specifically seeks opinions on making this trust information publicly available by default, eliminating the need for an application process.

Implications and Considerations:

The move towards increased transparency in trust ownership of UK land could have profound implications for privacy, compliance and the administrative burden on trusts. Stakeholders must consider the potential benefits of transparency against the rights and confidentiality of trust beneficiaries.

Conclusion:

As the UK government consults on this pivotal change, understanding the nuances of the proposed regulations and their impact on land ownership structures is crucial for legal professionals, trustees and landowners. The consultation offers a platform for stakeholders to voice their perspectives and shape the future of land ownership transparency in the UK.