A Reminder - Changes to UK Company Law
The Economic Crime and Corporate Transparency Act received royal assent on 26 October 2023 which introduced the biggest changes to Companies House since corporate registrations were established in 1844, gives Companies House the power to play a far more significant role in tackling economic crime, supporting economic growth, and making sure the UK is one of the best places in the world to start and grow a business.
Over time, the measures will lead to improved transparency and more accurate and trusted information on our registers. This will drive confidence in the UK economy, increasing the value of the register for businesses and citizens across the UK and beyond.
The measures include:
introducing identity verification for all new and existing registered company directors, people with significant control (PSCs), and those who file on behalf of companies
broadening our powers to become a more active gatekeeper over company creation and more reliable data
more reliable and accurate financial information on the register, which reflects the latest advancements in digital technology and enables better business decisions
providing Companies House with more effective enforcement powers, and increasing our ability to share relevant information with partners
enhancing the protection of personal information to protect individuals from fraud and other harms
Know Your Client - All about the Landlord
The private rented sector has evolved dramatically and as the industry has embraced technological innovations, systems and processes to ensure that all the necessary compliance is adhered to on behalf of landlords, yet there is one glaring problem that is not always properly addressed - identifying and verifying the legal owner the rental property.
Over the last 12 months we have conducted lettings audits which consist of a 40 point check list, some of which relate specifically to the property owner. Identifying the legal owner is of paramount importance, not just at the point of an audit, but more so when a landlord instructs an agent to act on their behalf.
Knowing the legal owner of a property is essential not only because letting out a property holds significant responsibilities and obligations, but also because the Due Diligence of ensuring who the legal owner is will avoid many serious disputes, in particular, fraud.
New Right to Rent Code of Practice comes into force 22nd January 2024
Since February 2016, Landlords in England have been required to check that anyone renting residential property’s the correct legal immigration status. This means that landlords and their letting agents (where applicable) must check documents manually or use the Landlord Checking Service through the Home Office to ensure that tenants have the Right to Rent..
On the 22 January 2024, the revised code of practice will be introduced, replacing the previous version and the changes implemented will coincide with higher maximum fines for non-compliance.
These higher fines represent what the Home Office has described as one of the “biggest shake ups” of civil penalties since the checks were first introduced.
Landlords are responsible for carrying out Right to Rent checks to ensure that all occupants of residential properties aged 18 and over have the Right to Rent in England. The penalties for non-compliance will increase from £80 per lodger and £1,000 per occupier for an initial breach to up to £5,000 and £10,000 respectively. Any repeat breaches will attract fines as high as £10,000 and £20,000.