Time for yet another review of non-UK trusts and overseas entities holding UK land

Trust registration rules

The UK government is extending its trust transparency rules – and non-UK resident trusts holding UK land are now firmly in scope. This change, once implemented, will widen the categories of trusts required to register on the UK’s Trust Register. Trustees, family offices, and advisers to non-resident trusts with directly held UK land interests should review their reporting obligations to avoid falling foul of the new requirements.

In its recently published response to an HM Treasury consultation on the Money Laundering Regulations, a number of technical changes that would improve Trust Registration Service were identified, including the closure of a reporting gap for non UK resident trusts, which will be the focus of this briefing.

As part of the government’s drive for increased transparency, the categories of non UK resident trusts which are required to register on the UK’s Trust Register are to be expanded to include all those which have a direct interest in UK land, whenever acquired.  To date, only those non UK resident trusts which have acquired land in the UK since 6 October 2020 have been required to register.  Those which already owned UK land at that date were not required to do so unless they incurred a UK tax liability.

While there is no public search facility for the Trust Register, trust information on the register is available to the public on request, subject to the applicant proving to the satisfaction of HMRC that they have a legitimate interest in obtaining the information.   An applicant seeking information is required to make the request naming the trust and demonstrating that the information will further an investigation into a specific instance of money laundering or terrorist financing. HMRC will not provide information about the trust if it considers that making the information will expose individual beneficial owners to a disproportionate risk of fraud, kidnapping, blackmail, extortion, harassment, violence or intimidation, or if the individual is under the age of 18 or lacks capacity.

We wait to hear when regulations implementing this change for non-resident trusts owning land will be laid before Parliament.

Update regarding changes to the Register of Overseas Entities

 In May 2025, many people were notified directly by Companies House of the prospective implementation of the requirement to update the Register of Overseas Entities with beneficial ownership changes that took effect during the transitional period (28 February 2022 to 31 January 2023) by 31 July 2025.  This change was introduced in the Economic Crime and Corporate Transparency Act 2023 but we understand that the implementation of this change has been delayed.

However, the changes to disclosure of trust related information (see our bulletin of 3^rd April 2025) come into force on 31 August 2025.  In limited circumstances, applications can be made to protect certain trust information which will remain protected from disclosure while Companies House processes the application.

If you would like to discuss how these changes may affect your trust structure, please get in touch with @Claire Weeks or @Emma-Jane Weider  or your usual contact at MTG.