The Land Reform (Scotland) Act 2016 (Register of Persons Holding a Controlled Interest in Land) Regulations 2021 (‘Regulations’) (Link)
The Regulations came into force on 1 April 2022 with a view to increase public transparency in relation to persons who have control over decision-making in relation to land in Scotland. The new public register will be operated by the Keeper of the Registers of Scotland and will be known as the Register of Persons Holding a Controlled Interest in Land (RCI).
The Regulations contain a duty on owners or tenants (for more than 20 years) of land to provide information about themselves to the Registers of Scotland, the property and anyone who is able to exercise significant influence or control over the land. The information is not publicly available elsewhere (for example, from the People with Significant Control Register at Companies House).
There is a 12 month grace period to register before penalties become applicable for failure to do so.
A new obligation for Insolvency Practitioners (‘IPs’)
The Regulations provide a new obligation on IPs to notify the Keeper of Registers of Scotland if they are winding up or dissolving a ‘non-natural person’ that appears on the new Register of Persons holding a controlling interest in land as soon as reasonably practicable.
People and significant control
People who have significant influence or control are likely to be in the following categories:
- persons who have certain contractual or other arrangements with an individual who owns or tenants land (for more than 20 years)
- partnerships and persons who own or tenant land (for more than 20 years) on their behalf
- trusts and persons who own or tenant land (for more than 20 years) as trustees of a trust
- unincorporated bodies and persons who own or tenant land (for more than 20 years) on their behalf#
- overseas legal entities
Notification of Keeper on event of death, winding up or dissolution
23.–(1) In the event of the death of an individual who is a recorded person, the executor of the individual must, as soon as reasonably practicable–
(a) notify the Keeper of the individual’s death, and
(b) provide the Keeper with the information mentioned in the second entry of column 3 of the table in regulation 12.
(2) Where paragraph (1) applies, the executor must also provide such further information in relation to the individual or the land as the Keeper may reasonably request.
(3) In the event of the death of an individual who is an associate, the executor of the individual must, as soon as reasonably practicable, notify the recorded person of the individual’s death.
(4) In the event of the winding-up or dissolution of a non-natural person (“the entity”) who is a recorded person, the person responsible for dealing with the assets or liabilities of the entity must, as soon as reasonably practicable,
(a) notify the Keeper of the winding-up or dissolution, and
(b) provide the Keeper with the information mentioned in the second entry of column 3 of the table in regulation 12.
(5) Where paragraph (4) applies, the person must also provide such further information in relation to the entity or the land as the Keeper may reasonably request.
(6) In the event of the winding up or dissolution of a non-natural person (“the entity”) who is an associate, the person responsible for dealing with the assets or liabilities of the entity must, as soon as reasonably practicable, notify the recorded person of the winding up or dissolution.
The information to be provided to the Keeper of Registers of Scotland is as follows (as per the second entry of column 3 of the table in regulation 12) –
(a) the person’s name and address
(b) the title number of the land, or where there is no title number, a description of the land that the person owns or tenants which is sufficient for it to be identified
(c) the date on which regulation 10 (Duty to notify of controlled interest and associates) ceased to apply to the person.
Register of persons holding a controlled interest in land (RCI) (Link)
Registers of Scotland (Link)