The Scottish Partnerships (Register of People with Significant Control) Regulations 2017 came into force on 26 June 2017. The regulations require limited partnerships and traditional partnerships where members are companies to notify Companies House of “people with significant control”.
The changes were introduced in order to ensure that the UK complies with anti-money laundering rules. Whilst the changes are clearly not aimed specifically at farming partnerships, the changes will apply to farming partnerships where the criteria under the legislation is met. In particular, traditional partnerships which have individuals as members will not be affected by the new rules.
The rules will require Scottish Limited Partnerships and qualifying Scottish traditional partnerships to identify “persons with significant control” and notify Companies House by 14 August 2017. The information will have to be confirmed on a yearly basis and any changes notified to Companies House.
The definition of what constitutes a person with “significant control” is complex. The regulations set out a number of conditions (for example, that the person has more than 25% of voting rights or holds more than 25% of surplus assets if the partnership is wound up) and at least one must be met before a person has “significant control”. For more information on the Regulations, please click here.