UK Government proposes wider access to trust information for overseas landowners

The UK Government has taken a significant step towards greater transparency in land ownership with the publication of the Register of Overseas Entities (Protection and Trusts) (Amendment) Regulation 2025. If enacted, this regulation will allow anyone to apply to Companies House for disclosure of information about trusts that indirectly own UK land.

Currently, such information is considered private and can only be accessed by applying to HMRC under the Trust Register provisions. The proposed change aims to make this information more readily available, enhancing public scrutiny and potentially deterring illicit activities.

It's important to note that the details of the trust arrangements themselves won't be automatically available on Companies House. Interested parties will need to submit a specific application to obtain this information.

This proposed amendment is a part of ongoing efforts to increase transparency and accountability in the UK's property market, particularly regarding overseas ownership.

Key differences in information access: HMRC vs. Companies House

A crucial distinction between applying to HMRC and the proposed application to Companies House lies in the "legitimate interest" requirement. To access information from the Trust Register via HMRC, applicants must typically demonstrate a legitimate interest in obtaining that information. This usually involves a suspicion of money laundering or terrorist financing.

However, under the proposed regulation, there will be only two specific scenarios where a legitimate interest will be necessary to obtain trust information from Companies House:

1. Cases involving minor beneficiaries: While it's not entirely clear if this applies solely to information about the minor or extends to broader trust details, the presence of a minor beneficiary could trigger a legitimate interest requirement. 
2. Requests for information on multiple structures: When an application seeks information about multiple trust structures, a legitimate interest may be required. This could be particularly relevant in complex ownership arrangements or investigations involving multiple entities.

Oversights and broader definition of legitimate interest

The proposed regulation appears to have an oversight regarding vulnerable beneficiaries who are not minors. Currently, there's no legitimate interest requirement for this group, which could potentially lead to unintended consequences.

Furthermore, the definition of "legitimate interest" has been expanded under the Regulation to include suspicions of sanctions breaches or tax evasion. It's worth noting that the latter likely refers to non-UK tax evasion, as HMRC would already possess this information through the Trust Registration Service.

Protection of information and potential risks

While it's possible to apply for protection of information on the ROE, the criteria are stringent. Applicants must demonstrate a serious risk of violence or intimidation, supported by evidence such as police reports. Mere high-profile status is insufficient.

Under the ROE, individuals are required to provide Companies House with the names, addresses, and dates of birth of settlors, beneficiaries, and protectors. The ability for anyone to apply for this information raises concerns about potential risks to vulnerable beneficiaries, who could be exposed to individuals seeking to exploit them.

Limited options for privacy in UK land ownership

The question of how to protect privacy while owning land in the UK becomes increasingly complex under the proposed regulations. Currently, the options are quite limited:

1. Corporate trustee: Using a corporate trustee to hold the property at the trust level can provide some level of privacy.
2. UK company as nominee: Owning the land through a UK company as a nominee can be another option, as the same requirements may not apply to UK companies.
3. Individual nominee: Having an individual hold the property as a nominee is a third possibility.

However, it's important to note that these options may have their own limitations and potential risks. Legal advice should be sought to assess the suitability of these approaches in specific circumstances.

All three options would require the trust arrangement to be added to the Trust Registration Service, but at least the legitimate interest requirement is applied more widely to provide some protections.

How can Ocorian help?

Ocorian’s dedicated trust team will guide you through the process of setting up the right structure and provide ongoing administration services for all types of trusts and manage your estate in the most effective way for you.

If you have any further questions on understanding UK beneficial ownership registers or our trust services, please contact a member of our private client team.