Beneficial interest Definition

GLOSSARY

Published by a UU��ֱ�� Property expert

What does Beneficial interest mean?

The holder of a beneficial interest is entitled to enjoy the use of the property in issue although not necessarily being the legal owner of the property.

Once a beneficial interest is established, it would entitle a party to long-term rights in respect of the property notwithstanding that party not being a party to a marriage/civil partnership or being a joint/sole owner of the property.

View the related checklists about Beneficial interest

Checklist for compromises of FCA-regulated entities: information requirements

Checklist for compromises of FCA-regulated entities: information requirements The Financial Conduct Authority (FCA) is the conduct regulator for financial services firms and financial markets in the United Kingdom. It has a duty under section 1B of the Financial Services and Markets Act 2000 (FSMA 2000) to pursue certain objectives, one of which is the consumer protection objective. The FCA lists its statutory objectives as to secure an appropriate degree of protection for consumers and to protect and enhance the integrity of UK financial markets, with a view to reducing the number of proposed compromises that they do not consider to be appropriate (see FG22/4, para 1.2). On 5 July 2022, the FCA published guidance on compromises of regulated firms (see FCA Guidance FG22/4 July 2022 and updated in January 2024) following their significant concerns about these tools being proposed and used by firms to avoid paying customers redress (see: LNB News 05/07/2022 72). Practitioners will need to take note of the guidance where the proposed compromise involves regulated companies, meaning...

Trustees and beneficial ownership information—checklist

Trustees and beneficial ownership information—checklist This Checklist should be read alongside Practice Notes: Trusts—disclosure of beneficial ownership information via the Trust Registration Service (TRS) and record-keeping and Trust Registration Service (TRS). See also Practice Notes: Trust Registration Service (TRS)—table of registration requirements and deadlines and Trust Registration Service (TRS)—trusts excluded from registration. These Practice Notes contain guidance on trustees’ obligations imposed as a result of the implementation (in relation to the registration of trusts) of the EU’s Fourth Anti-Money Laundering Directive Directive (EU) 2015/849 (4MLD) through the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLR 2017), SI 2017/692 and the EU’s Fifth Anti-Money Laundering Directive Directive (EU) 2018/843 (5MLD) through the Money Laundering and Terrorist Financing (Amendment) (EU Exit) Regulations 2020 (MLR 2020), SI 2020/991. In this Checklist, references to MLR 2017, SI 2017/692 include the amendments incorporated as a result of MLR 2020, SI 2020/991 coming into effect, unless otherwise stated. Beneficial owners of a trust include the settlor(s), trustee(s), beneficiaries and...

Establishing a beneficial interest (joint ownership)

Where two or more people together own real property, they hold it under a trust of land. Where property is held on a trust of land, the legal estate and equitable estate are separate. The legal estate must be held by the co-owners as joint tenants. The beneficial interest in the property can, however, be held by the co-owners either as:•joint tenants, or•tenants in commonIf the co-owners are joint tenants, each has an indivisible share in the property, where each owns the whole, rather than an identifiable share of the property. The right of survivorship applies so on the death of one joint tenant, the deceased's interest in the property passes automatically to the other(s).Where the beneficial interest is held as tenants in common, interests can be unequal, and the share of one does not pass to the survivor but is part of the deceased's estate.A tenancy in common may arise on the original transfer or conveyance where there is an express declaration of trust, or where an existing joint...

Enforcement case study—pre and post action protection and recovery

Enforcement case study—pre and post action protection and recovery This Practice Note, produced in conjunction with Phil Roberts of Clarke Willmott, provides a case study for consideration of the different means, in both a pre-action and post action context, of protecting a prospective/actual judgment creditor in terms of debt recovery—here a supplier of shoes. It covers the basic concepts of guarantees, retention of title clauses and enforcement processes such as charging orders, taking control of goods and third party debt orders with links through to related content on these subjects. The case study Please note: all the names in this case study are entirely fictional and any apparent similarity to any real people or businesses or companies is entirely coincidental and unintended. Pollyanna Pride has been supplying shoes to Mr Cobbler of Shoes It Is for almost three years. The shoes she makes are one-off soft leather designer boots. They usually sell well, even though the retail price is £295 a pair. Pollyanna is particularly proud of the...

Discover our 389 Practice Notes on Beneficial interest

Memorandum on the responsibilities and obligations of a director of an AIM company

Memorandum on the responsibilities and obligations of a director of an AIM company 1 Introduction 1.1 This memorandum has been prepared for the directors and proposed directors (the Directors) of the Company to provide a general introduction to the principal responsibilities and obligations of a director of a company whose shares are admitted, or will be admitted, to AIM, a market operated by London Stock Exchange plc (LSE). 1.2 Once a company’s securities are admitted to trading on AIM, a company and its directors are subject to an increased layer of regulation. This includes requirements set out in the AIM Rules for Companies published by the LSE (AIM Rules), the Disclosure Guidance and Transparency Rules sourcebook (DTRs), the Prospectus Rules and the Market Abuse Regulation. 1.3 As a Director, you will be responsible (individually and collectively with your fellow Directors) for the Company's compliance with these provisions. The LSE has the power to fine or publicly censure an AIM company in the case of a...

Joint venture shareholders’ agreement—deadlock (50:50)

Joint venture shareholders’ agreement—deadlock (50:50) This Agreement is made on [insert date] 20[insert year] Parties 1 [Insert name of first shareholder] incorporated in England and Wales under number [insert company number] whose registered office is at [insert address] ([A]), 2 [Insert name of second shareholder] incorporated in England and Wales under number [insert company number] whose registered office is at [insert address] ([B]), and 3 [Insert name of the company in which the shares are held] incorporated in England and Wales under number [insert company number] whose registered office is at [insert address] (the Company). BACKGROUND (A) The Company, at the date of this Agreement, has in issue ordinary shares of £[insert nominal value] each, of which one ordinary share has been issued fully paid and is registered in the name of [A] and one ordinary share has been issued fully paid and is registered in the name of [B]. (B) The Company shall carry on business in accordance with the terms and conditions of this Agreement....

Dive into our 64 Precedents related to Beneficial interest

What is the position of a security holder if the company that created the security is dissolved?

What is the position of a security holder if the company that created the security is dissolved? This Q&A focuses on the impact the dissolution of a security provider can have on the ability of a security holder to effectively enforce its security. It also considers the position of a receiver appointed by the security holder prior to the dissolution of the relevant company. Summary If a security provider is dissolved as a matter of English law it is normally still possible for the security holder to enforce the security it holds by exercising the mortgagee’s power of sale. There may be circumstances in any particular case that make an application to restore the dissolved company to the register desirable to protect the security holder’s position. Circumstances where this issue commonly arises The problems associated with a security provider being dissolved while security is in force occur most often in real estate finance and other asset finance transactions. Typically, these issues arise where a special purpose...

What will be the applicable limitation period where a settlement agreement is secured by way of a charging order and the debtor under the agreement subsequently defaults on repayment of the debt, which entitles the creditor to immediate repayment of the whole sum, and the creditor now wishes to enforce their charging order?

What will be the applicable limitation period where a settlement agreement is secured by way of a charging order and the debtor under the agreement subsequently defaults on repayment of the debt, which entitles the creditor to immediate repayment of the whole sum, and the creditor now wishes to enforce their charging order? We have assumed that reference is being made to a charging order. When seeking to enforce the charging order it would have been subject to the previous rules in this area (CPR 73 and CPR PD 73 were amended with the changes coming into force on 6 April 2016). Where such orders charge a beneficial interest under a trust in land, the charge is protected by means of a restriction under the Land Registration Act 2002. We also assume that the charging order was validly obtained. If seeking to apply for an order for sale to enforce a charging order made prior to 6 April 2016 you should still follow the regime set out in the amended...

See the 556 Q&As about Beneficial interest

Corporate weekly highlights—12 December 2024

This week's edition of Corporate weekly highlights includes the High Court judgement in Re KRF Services (UK) Ltd and others, which clarifies the position of sole directors under the Model Articles, the FCA’s 46th Quarterly Consultation, which proposes updates to the FCA Handbook to align it to the new edition of the UK Corporate Governance Code, and the Companies (Accounts and Reports) (Amendment and Transitional Provision) Regulations 2024, which will reduce the reporting burden on companies. Also included is a recent case on constructive trusts in relation to the sale of shares, and an update on the CMA’s approval of the merger between Vodafone and Three.

FTT decides sale of LLP capital accounts not subject to income tax (Hoyle and others v HMRC)

Tax analysis: In Hoyle, the First-tier Tax Tribunal (FTT) held that the anti-avoidance provisions in Chapter 5 of Part 13 of the Income Tax Act 2007 (ITA 2007) did not apply to the disposal of the appellants’ capital accounts in limited liability partnerships (LLPs) engaged in leasing film rights. This was because, following the judgment in Samarkand v HMRC [2017] EWCA Civ 77, as a matter of fact and law, the LLPs film leasing activity was not a trading activity for tax purposes.

Read the latest 646 News articles on Beneficial interest

Speed up all aspects of your legal work with tools that help you to work faster and smarter. Win cases, close deals and grow your business–all whilst saving time and reducing risk.

Case studies

"LexisLibrary gives us the most relevant and recent cases and always has the latest information on them. It makes research so much easier. We're more cost-effective for our clients and more efficient each day"

Advocates

Access all documents on Beneficial interest

GET ACCESS NOW

Top

Trial

UU��ֱ��

GLOSSARY