The Department for Business, Energy and Industrial Strategy has published proposals to reform Scottish Limited Partnership Law. The proposals have been developed following a consultation on this topic last year. The ACC response to this consultation can be viewed here. The reforms proposed would make it clearer who runs limited partnerships to enable investors to continue to use them legitimately while cracking down on their use in unlawful activities. These include:

• Requiring a real connection to the UK, including ensuring SLPs do business or maintain a service address in Scotland;
• Registering new SLPs through a company formation agent, meaning frontmen will be subjected to anti-money laundering checks; and
• New powers for Companies House to remove limited partnerships from the company register if they are dissolved or are no longer operating.

The reforms being proposed will apply to all limited partnerships in the UK and will also include new annual reporting requirements for limited partnerships in England and Wales and Northern Ireland. Comments on the proposals are requested by 23 July 2018.

If you have any questions about these measures please contact Nick Smith