Rules requiring farmers who trade as either a company or limited liability partnership to register annually with Companies House are to be extended in a move that will affect a number of farmers in Scotland.
It has been a requirement for People with Significant Control of a company or LLP to file their details to a central public register since April 2016.
The idea is to increase transparency over who owns and controls UK companies and help law enforcement agencies tackle money laundering and terrorist financing.
However, the accounting firm Saffery Champness has warned changes to the regime are coming – and these will broaden their scope.
The new rules mean that from 24 July, Scottish Limited Partnerships will be required to register PSC information at Companies House.
The same will apply for General Scottish Partnerships where there is a limited company as a partner.
Companies House has also announced that the way in which people notify PSCs will change.
From 26 June PSC information will not be updated on the confirmation statement (CS01), but instead it will be necessary to use separate forms with a 28-day time limit for changes to be notified and registered.
Jamie Younger, partner with Saffery Champness, said: “On the surface the whole concept may seem relatively simple, but it will require some thinking through – about how a business is run and who actually runs it, and Scottish limited partnerships (of which there are a large number in the farming sector) and Scottish general partnerships (with partners who have limited liability) must now file their PSC.”
My Younger said some people may not have been aware that there has for some time been a requirement for Scottish limited partnerships to register at Companies House.
“Furthermore, non-compliance is a criminal matter, and non-submission or late submission of information is likely to incur a penalty”
What is a PSC?
The definition for People with Significant Control is someone who meets one or more of the following conditions:
- directly or indirectly holding more than 25% of the shares
- directly or indirectly holding more than 25% of the voting rights
- directly or indirectly having the right to appoint or remove a majority of directors
- having the right to exercise, or actually exercising, significant influence or control