Determining beneficial ownership The Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLR 2017), SI 2017/692, as amended, impose obligations on firms in relation to client due diligence (CDD) on beneficial owners. Where a client is a legal person, trust, company, foundation or similar legal arrangement, firms must take reasonable measures to understand the ownership and control structure of that legal person, trust, company, foundation or similar legal arrangement. Where the client is beneficially owned by another person, you have three obligations: • identify the beneficial owner • take reasonable measures to verify the identity of the beneficial owner so you are satisfied you know who they are • if the beneficial owner is a legal person, trust, company, foundation or similar legal arrangement, take reasonable measures to understand the ownership and control structure of that legal person, trust, company, foundation or similar legal arrangement For

A caveat, under the Non-contentious Probate Rules 1987, SI 1987/2024, r 44, is a notice in writing that no grant is to be sealed in the estate of a deceased without notice being given to the caveator. The effect is that the Principal Probate Registry or one of the district registries, will not issue a grant once a caveat has been entered so that the personal

The equity of exoneration is a legal term that may apply when one person (A) gives security for their spouse's (B) debt by granting a mortgage for B's debt over property that is jointly owned by A and B. If, when B has been made bankrupt the property is sold by the trustee in bankruptcy in order to repay B's debt then, if the equity of exoneration applies, A would be entitled to be repaid by B. Effectively this also means in practice that B's debt would be paid

Section 257 of the Housing Act 2004 (HA 2004) defines a particular type of HMO (a 'converted building containing self-contained flats')as an HMO if certain conditions are met. In summary, a building is an HMO under HA 2004, s 257 if: it has been converted into self-contained flats; the conversion did not comply with the appropriate building regulations in force at the time and less than two-thirds of the flats are owner-occupied (ie, they are rented or otherwise not occupied by their owners). This is distinct from the shared-house HMOs under HA 2004, s 254. HA 2004, Sch 14 lists

We have assumed that the loan is a consumer credit agreement subject to the Consumer Credit Act 1974 (CCA 1974). See: Commentary: Part V Entry into credit or hire agreements: Goode: Consumer Credit Law and Practice, in particular at [5.108], which states: ‘…Mortgage lending (in particular, the so-called “second mortgage” lending) is an area where abuses have been identified in the past. These have in some cases related to improper activities by door-to-door canvassers (see CCA 1974, ss 23(3) and 48–49); but the usual “cooling-off” periods permitted by CCA 1974, ss 67–68 are not applied to the agreements specified in CCA 1974, s 67(a) because of the administrative difficulties which were feared to be likely if regulated mortgage agreements were made and the security registered only for the agreement, and hence the security, to be cancelled. Instead

LR 11 Annex 1 sets out a list of transactions to which the related party transaction rules do not apply. Paragraph 2 of LR 11 Annex 1 provides that an exemption applies to a transaction that consists of: “the take up by a related party of new securities or treasury shares under its entitlement in a pre-emptive offering”. The phrase “pre-emptive offering” is not defined in the FCA Handbook and does not appear in the glossary. However LR 9.3.11 R and LR 9.3.12 R, which set out rules

The section 10 of the Electricity Act 1989 (EA 1989) provides two methods for an electricity supply undertaking to obtain rights enabling it to construct or, if already in existence, keep power lines on, under or over any land. The first is by compulsory acquisition of the necessary land under EA 1989, Sch 3. The second is by acquisition of wayleaves, pursuant to EA 1989, Sch 4. EA 1989, Sch 4, para 6 provides: ‘(1) This paragraph applies where— (a) for any purpose connected with the carrying on of

Most demergers (liquidation demergers, capital reduction demergers and indirect statutory demergers) include a step under which the shareholders of the target company receive shares in one or more newly incorporated companies in respect of their original shares. In order to prevent this from triggering a disposal for capital gains purposes, and so potentially a charge to capital gains tax (or corporation tax on chargeable gains), the shareholders would rely on section 136 of the Taxation of Chargeable Gains Act 1992 (TCGA 1992). TCGA 1992, s 136 applies where there is a scheme of reconstruction under which the new company issues shares or debentures to the shareholders of the target company ‘in respect of and in proportion to (or as nearly as may be in proportion to)’ their original shareholdings. The definition of a reconstruction in TCGA 1992, Sch 5AA also requires the entitlement of any shareholder to receive new shares to be the same as that of any other shareholder holding shares of the

This Q&A has assumed that • the Child Maintenance Service (CMS) has not considered the issue of jurisdiction; ie—that the decision-maker has neither rejected nor accepted any assertion that the proposed paying party falls within the jurisdiction of the CMS on geographical grounds under section 44 of the Child Support Act 1991 (CSA 1991) • both the proposed receiving party and qualifying child are habitually resident in the UK The Child Maintenance Service (CMS) will only have jurisdiction to make a maintenance calculation if each of the person with care (PWC), non-resident parent (NRP) and qualifying

The courts regularly hear disputes regarding the ownership of property following the breakdown of a relationship between unmarried people. As they are not married, the court does not have the wide discretion to divide assets under the Matrimonial Causes Act 1973 according to notions of fairness, seeking as a general rule to achieve equality of outcome. Instead, an application is made under the Trusts of Land and Appointment of Trustees Act 1996 for a declaration as to each party’s interests and quite often an order for the sale of the property. When making the declaration as to the beneficial ownership, the court will apply trust law principles. It does not have a discretion in the matter. The ownership of the legal interests will seldom be in dispute. It will be the subject of registration at HM Land Registry which will be conclusive of the matter. The dispute as to the beneficial

Requirement to meet minimum energy efficiency standards Under the Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015 (MEES Regulations 2015), SI 2015/962, reg 20(3)(a) a property is not considered to be a non-domestic private rented (NDPR) property (and so is not required to meet the minimum energy efficiency standards) where it is let on a tenancy which is granted for a term of six months or less, provided that: • the lease does not contain any provision allowing the tenant to renew beyond six months • at the time that the lease is granted, the tenant has not been in occupation for a continuous period of more than 12 months In addition, NDPR property only falls within the ambit of the MEES Regs

The Leasehold Reform Act 1967 (LRA 1967) enables a leasehold tenant of a house to purchase the freehold by way of enfranchisement. There are two valuations methods contained within the lease: • a LRA 1967, s 9(1) valuation is based on what is termed the original valuation basis, being the value of the site • a valuation under LRA 1967, s 9(1A) is based upon the value of the house, which will include a calculation of the marriage value of the interests. The former in effect values on the basis of the investment in the freehold land and is calculated on a multiple of the ground rent. This recognises that the investment is not simply