It would appear that there are other Land related issues - talk about "learning something new every day" ! I found the following on a web site called - www. whatdotheyknow.com - Am I the only person who had no idea about this?
"Two days after the September 11 attacks on America, a retired British civil servant stood up at a discreet symposium in Cambridge and delivered a stark warning:
Britain’s secret system of land ownership is open to corruption, money laundering, tax avoidance and "economic crime which is a threat to civilisation"
Andrew Edwards, a former deputy secretary to the Treasury and an expert on how the wheels of government and finance work, highlighted a major legal loophole for the Inland Revenue;
namely that because the British government has no accurate record of who owns what land in the UK, it can’t determine who should be paying taxes and how much.
Land ownership is kept secret in Britain because of the outdated system of "beneficial ownership", which means registered owners of land and property are under no obligation to enter their true names. Quite simply this means land in Britain can be bought and sold without anyone, especially the Inland Revenue, ever knowing who the real purchaser is.
Edwards had spelled out his concerns earlier in a 2001 Review he conducted into the Land Registry, the government body that guarantees ownership to registered estates and interests in land for the whole of England and Wales.
"In these days when economic crime and money laundering have become major issues for the world economy and society, and when property assets are a significant vehicle for holding the proceeds of crime, the fact that the Land Registry neither records on the register or knows who the true owners of property are is becoming harder to defend."
This means foreign registered companies based in tax havens can buy and sell land and buildings in Britain without contributing a penny to the British tax-purse, while at the same time receiving taxpayers’ cash when they apply for grants and public subsidies for housing improvements, business ventures, forestry, agricultural and environmental schemes without even identifying who they really are.
Although Edwards pointed out that the current system is concealing significant criminal activity, it is mostly being used to the advantage of an elite group of wealthy, law-abiding people who are so rich that they can choose how much tax to pay and to whom.
An investigation by the Sunday Herald and the Who Owns Scotland project, the independent land research organisation in Edinburgh, has found that the UK Treasury is losing hundreds of millions of pounds a year in Scotland alone because millions of acres of land are held in offshore trusts or nominee companies that hide the true identity of the owners.
We have not mapped the entire country and we have not included urban areas. But, despite the difficulty in getting exact details, we have established that at least 1.1 million acres of the Scottish countryside is owned by offshore companies or nominee companies that can avoid tax payments to the Treasury.
Offshore companies are registered in so-called tax havens in "low" or "no tax" jurisdictions in places such as the Cayman Islands and the Dutch Antilles. Not only do these countries charge virtually no tax to companies, they also guarantee the anonymity of ownership. Like Swiss bank accounts, there is no way of finding out the true ownership of a company registered in an offshore tax haven.
For land owned by nominee companies, used by large estates such as Buccleuch estate, the system is often used to hide true ownership. In the case of the Buccleuch estate, the largest private land holding in Scotland, 99.7 percent of the shares are owned by Anderson Strathern Nominees Ltd, itself a company with a total of four £1 shares owned by four Edinburgh lawyers which has not traded since incorporation in 1992.
In addition, a further 2.5 million acres, or 13.1 percent of Scotland’s 19,068,631 acres, is owned by private trusts. Such trusts allow landowners to avoid by entirely legal means the inheritance tax, stamp duty and capital gains tax that ordinary householders must pay when selling their assets.
Without taking into account urban Scotland, the booming property market, and the rest of the UK, we estimate that at least £72 million a year is lost on average to the Treasury in foregone tax through the offshore ownership of rural Scotland. The true figure would be much more if it were possible to survey all of Scotland. For the whole of the UK, the figure almost certainly amounts to billions of pounds of lost revenue.
On the basis of research by Who Owns Scotland, offshore companies and trusts are estimated to avoid an annual tax liability of £2m, but that is purely on capital taxes and sales. Tax foregone as a consequence of accountancy practices that move money in and out of the UK in the guise of labyrinthine land, loans and share transactions between parent and UK companies is likely to be upwards of £20 million a year.
The most modest estimates of inheritance tax revenue lost through private trusts reveal a total liability to inheritance tax of £1 billion, resulting in an annual capital loss of around £40 million and further £10 million in lost capital taxes.
Remarkably, while one small, independent research programme can make accurate estimates of lost tax, the arm of government charged with collecting tax, the Inland Revenue, is at a loss itself when it comes to monitoring the activities of Scotland’s secret landowners.
A number of the Inland Revenue’s officials have copied some of the methodology and even the name of Who Owns Scotland project. In the course of defending themselves against a judicial review brought by the al-Fayed brothers, led by Mohamed al-Fayed, the owner of Harrods store in London and a 32,000 acre Highland estate, in Edinburgh in 2002, court papers revealed that the Inland Revenue’s special compliance unit in Edinburgh had set up a project to examine landholdings in Scotland owned by offshore companies.
It is understood that the officials from Inland Revenue’s Who Owns Scotland team were concentrating on establishing whether offshore companies were using Scottish land holdings and estates to move millions of pounds in and out of the country without paying tax. When money is held offshore in a tax haven there is no liability, but the moment it comes into the UK it can and should be taxed.
The problem facing Inland Revenue is the sheer volume of cash that flows in and out of the UK via complex networks of companies and trusts. We have uncovered companies owning Highland estates based in places such as the Bahamas, the Cayman Islands, Panama, as well as in tax havens still blacklisted by the Organisation for Economic Co-operation and Development (OECD) including Liechtenstein, Andorra and Liberia.
The secret nature of land ownership is also a useful way to "lose" money or put it beyond the reach of the authorities. Take the mysterious case of Dame Shirley Porter and several hundred acres of Sitka spruce in the Highlands.
In December 2001, the House of Lords ordered Dame Shirley Porter, the disgraced former leader of Westminster City Council, to pay £27 million in surcharges to the London local authority as a result of a "votes for homes" scam she was found guilty of. The council obtained a court order seizing her assets worldwide. But Dame Shirley claimed she only had assets worth £300,000, which came as something of a surprise given that she was the daughter of Jack Cohen, the founder of the Tesco supermarket chain. In 1991 her share portfolio recorded that she owned £5 million in Tesco shares, and more recently, at the time The Sunday Times Rich List was published, claimed she was worth about £70 million.
So what happened to her "disappeared" millions? We may have found some of it. At one time Dame Shirley owned substantial land holdings in Scotland, three lots of land purchased as part of the tax-driven forestry scandal of the early 1980s. In one week in June 1988, all three holdings were sold to Oakum Association Ltd for a total of £620,000.
Oakum Association Ltd is a company registered in the British Virgin Islands with a box office address in Geneva, Switzerland. No one knows whether that is a company owned by Dame Shirley or members of her family or whether it is another anonymous land speculator.
The plots were sold by Oakum Association Ltd in January, February and June 2002 to a variety of buyers. There is, of course, nothing to link Oakum to Dame Shirley Porter. We will never know whether the Sitka spruce was sold or simply transferred to disguise true ownership until the time came for disposal.
A BBC investigation earlier this year also linked Dame Shirley to Whitecoat Investments Ltd and the Sunset Trading Company, both registered in the tax haven of the British Virgin Islands.
Unable to trace her wealth, Westminster Council have so far only managed to recover £7,000 of the £27 million owed to it by Dame Shirley, and don’t think going down blind financial alleys in the British Virgin Islands is a priority for the council.
Back in Scotland, secret land ownership is not on the radar for the Scottish Executive, and the work of establishing who actually owns large parts of Scotland has barely begun. With the passing of the Land Reform Act, which gave communities the opportunity to buy land when it came on the market, many in the Scottish Parliament felt their work was done.
In the first flourish of enthusiasm for land reform that accompanied devolution, the Scottish Office, as it then was, established the Land Reform Policy Group to map out progress on the issue.
Post devolution, the Eleventh Progress Report on Land Reform, on 5th November 2001, concluded that there was no need to improve information on the ownership of land in Scotland. The study – Ownership of Land Holdings in Rural Scotland - concluded that raising awareness of existing information provision would be more useful than developing a new system, and the demand for information on beneficial ownership, the euphemism for secret offshore ownership and nominee companies, had no clear rationale.
Instead it decided to publish a booklet – Sources of Land Ownership Information in Scotland – to publicise existing sources so that those searching for information will be able to find out where it is likely to be held.
Anonymous ownership is also no bar to claiming public funding. Lord Sewel, when he was agriculture minister at the old Scottish Office, asked the Forestry Commission to review its policy of giving grant support to companies that did not reveal their true owners.
The Forestry Commission awaited the outcome of the Land Reform Policy Group, which concluded that it was not necessary to reveal the ownership of land. So while applicants for the new Scottish Forestry Grants Scheme are required to sign a declaration agreeing that details within the application and contract may be place in the public domain, there is no obligation to name the ultimate beneficiaries whose offshore bank accounts will be capitalised with the public money.
While the flow of public money to offshore accounts in places such as the Cayman Islands and even Liberia continues apace, Andrew Edward’s Land Registry Report highlighting massive tax evasion lies gathering dust on the shelves of the renamed Ministry of Constitutional Affairs, rotting slowly like the secret system of land ownership it condemns. In government departments from Whitehall to the Scottish Executive, the meter is running on the millions of pounds lost every year while there is no action taken against the scandalous and entirely legal system of land ownership in Britain."