The New RCI Rules – What Does It Mean For You?

• Date5th January 2021
• AuthorHall Baird
• Categories
  • General News

The new Register of Persons Holding a Controlled interest in Land (RCI) came into effect in 2022 and the regulations will be enforced from 1 April 2024.  If you haven’t done anything the time to act is now.

Does it affect you?

The main aim of the RCI is to increase public transparency in relation to individuals who have control over decision-making in relation to land but who do not appear on the Land Register or Sasine Register.

The idea is that the RCI – which is held and maintained by the Keeper of the Registers of Scotland – will make it easier for individuals and communities to identify those ultimately responsible for land, making it easier to engage with them about land issues that affect their local communities.

Generally if title to your property is in the name of a Partnership, Trust, Corporate or Community Body then it is likely that you need to register in the RCI.

The owner of land or registered tenant is known as the “Recorded Person” and it is their name that appears on the registered title. The person with significant influence or control is known as the “Associate”, for example a partner in a farming business who is not specifically named on the title deeds.

Are there any Exemptions?

Where a Recorded Person is already required to register or is subject to other “transparency regimes” there is no requirement to register in the RCI. For example if you are a UK Registered Company, Scottish Charitable Incorporated Organisation or a Limited Liability Partnership you do not need to register.

How do you Register?

It is the Recorded Person who is responsible for registration. They must provide information relating to the Associate on or before 1st April, 2024 or within 60 days of them becoming an Associate, whichever is earlier.

Registration is online and can be completed directly with the Registers of Scotland:  Register of Persons Holding a Controlled Interest in Land – Registers of Scotland (ros.gov.uk)  There is no requirement for a submission to be made by a Solicitor and there is no registration fee chargeable by the Registers of Scotland.  It is the responsibility of the Recorded Person to keep the RCI up to date in the event of any changes in control.

Why Should I Register?

Failure to register can result in a criminal penalty.  The penalty is a fine of up to £5,000.  We urge anyone who thinks they may be impacted by these regulations to take steps to confirm whether or not they require to register.

If you need assistance or guidance with RCI registration please get in touch with us for details of our fees for the level of assistance required to complete your application.