Scottish ministers’ recommendations to extend the transitional grace period for the new Register of Persons Holding a Controlled Interest in Land (RCI) rules will likely be welcomed by the rural community.
While we’ve been working hard with clients to submit the necessary information, it’s best anyone affected who’s still to do so does that sooner rather than later, even if there is an extension.
Here’s a quick refresher about the RCI, what it covers, and what information you’ll need to submit.
Background
On 1 April last year the RCI went live. The Scottish Government says it’s aimed at improving transparency in land ownership: making it easier to find out who has significant influence or control over land when that information can’t be found elsewhere.
The latest proposals from ministers are to extend the grace period — the time people must submit information without the criminal sanctions that’ll ultimately apply — from 31 March 2023 for 12 months. This gives those who need to register an interest more time to do so without the risk of being charged with a criminal offence or attracting large fines.
Here's a quick refresher on the RCI, what it includes and what information you’ll need to submit.
Who needs to submit information?
The RCI is principally aimed at partnerships, trusts, unincorporated organisations, and overseas companies.
It also introduces new terminology. Specifically —
Tenants under a long lease (one granted more than 20 years) or owners who have a controlled interest in land will now be registered as a “recorded person”
Someone who has the right to control dealings with the land, even if they choose not to, will be registered as an “associate”
Remember though, the RCI’s aim is transparency in land ownership where that information isn’t easily available elsewhere. As such, you only need to register if you’re the owner of land, or a tenant with a registrable lease, if your details aren’t already listed publicly on the likes of the Land Register or Companies House.
And if you do need to provide details, you’ll have to register the owner and the associate’s information.
The register applies to anyone purchasing or leasing land in Scotland from the effective date but also applies retrospectively, so existing landowners and tenants also have a duty to enter their details and update the Keeper of the Registers of Scotland if any details change. This includes, in certain circumstances, if a partner joins a partnership.
The rules, including the exemptions, can be complex. Not all partnerships, trusts and unincorporated associations will need to enter details and there are situations, particularly with some farming partnerships, where registration isn’t required and would actually be best avoided.
As such, it is well worth seeking advice to get clarity about your situation and any RCI requirements.
What information do I need to submit?
Requirements include —
The name and address of a recorded person
A description of the land, including title number where it’s registered
Details of the recorded person who owns or leases the land, including trustee-owned land
Name and address of each associate, or — where a security declaration has been made — a copy of the statement
The date of any notice given to the Keeper
What now?
Given the complexity I’ve mentioned and that non-compliance can attract criminal sanctions, it's important anyone who needs to provides accurate information on time.
As I’ve said, our advice is to do this sooner rather than later, and our team can answer any questions you have and guide you through that process.
Hannah Black
Senior solicitor
Hannah supports the rural team in Aberdeen advising clients on a broad range of matters such as purchase and sale of rural properties, voluntary registrations, servitudes and security work.
Posted: February 7th, 2023
