Register of Persons Holding a Controlled Interest in Land Comes Fully into Force

A new Register of Persons Holding a Controlled Interest in Land (RCI) was introduced in Scotland in April 2022. It contains information on who has control or significant influence over the owner or tenant of land and property in Scotland. When referring to a tenant or lease in this context, we mean a lease which is for more than 20 years and which has been registered in the Land Register of Scotland or the General Register of Sasines.

The legislation requires completion of the register where the information on who has significant influence or control over the owner or tenant where it is not otherwise publicly transparent.

The register has been set up as the latest stage in the Scottish Government’s drive to introduce transparency of land ownership in Scotland. This means members of the public and any interested party can search the register to find out who the controlling party really is.

It is also important to note that failure to register or update an entry, from 1 April 2024 can result in a fine of up to £5,000!

Who needs to complete the RCI?

Clearly, the vast majority of titles to land in Scotland will disclose the identity of the owners. The RCI is designed to be used where the holder of the title and the person who controls it are not the same or where the controlling interest is not clear.

Some examples of this are:

• Where the title is in the name of a partnership but since the date of registration of the title, new partners have been assumed but are not mentioned on the title;   
• Where the title is held by a Trust but the trust contains provisions allow individuals who are not trustees (e.g. managers etc.) to deal with the property;      
• In circumstances where a club or association owns property through trustees but it has a board of management who can make decisions in relation to the property.

These are just some examples of where the person or organisation are affected. They must register the interest of the individuals involved who can exert significant influence or control over what can happen to the property.

The regulations enabling this legislation are contained in The Land Reform (Scotland) Act 2016 (Register of Persons Holding a Controlled Interest in Land) Regulations 2021.

Who is responsible for providing the information?

The “Recorded Person” is responsible for providing the information to the RCI. The Recorded Person is the individual or entity in whose name the title has been registered. Any changes to the significant influence or controlling interest must be registered within 60 days of such a change occurring.

Those who can exercise a significant influence or controlling interest are called “Associates”. All Associates must supply their contact details to the Recorded Person. The Recorded Person then needs to record the information in the RCI. The Associates must also inform the Recorded Person of any changes to their contact information.

The RCI is free to use for those who have to enter the information. It is also free to search.

Are there any exempt organisations?

There are a number of exemptions. These can be found in Schedule 2 of the Regulations. This list generally includes:

• Limited companies incorporated in the UK       
• European public limited liability companies       
• Charitable incorporated organisations in Scotland and elsewhere in the UK       
• Building Societies, certain financial institutions, Friendly Societies and Credit Unions       
• Public Authorities
• Scottish Partnerships and Limited Liability Partnerships

To find the definitive list of entitles that are exempt from registration, please review Schedule 2.

Where can I find out more information?

The Registers of Scotland has produced a very informative video stepping through the requirements of RCI and the registration involved. We would encourage anyone involved in any of the organisations caught by this legislation to watch this video.

You can also visit the Registers of Scotland page dedicated to RCI.

Specialist Property Solicitors in North Berwick and Dunbar, East Lothian

Our solicitors are very experienced in dealing with all conveyancing and property matters on behalf of our clients. If you have any questions about RCI or would like to discuss how your information can be registered, please use the details on our contact page to
get in touch.