Further to our recent update, on 23 January 2024, the UK government updated its Outline Transition Plan to confirm upcoming timings within its 18 month schedule for the changes introduced by The Economic Crime & Corporate Transparency Act 2023 (the “ECCTA”).
Since ECCTA received royal assent in October 2023, it has established a series of changes for businesses, some of which are already in effect, while others are set to be gradually introduced until the end of 2026.
Recent changes
To strengthen privacy and confidentiality provisions, as of 27 January 2025, Companies House can review and assess applications from individuals seeking to have their residential addresses withheld from public view where they’ve been used as a registered office address. For further information or to make an application, see: here.
What are the upcoming changes?
Following the government timeline, Companies House is expected to introduce the following changes over the coming months:
Strike off powers
To protect the integrity of the system, from 25 February 2025, Companies House is expected to have newly granted powers to expedite the strike-off process of a company where it has been concluded by the registrar that the company has been on a “false basis”.
Identification Verification regime
The new Identification Verification (the “IDV”) regime being introduced by Companies House is a fundamental part of ECCTA seeking to enhance security and reduce fraud. Under the act, Companies House will be required to verify the identity of anyone submitting information to the public register, this includes:
- New and existing directors.
- Persons with Significant Control (“PSC”).
- Individuals who are an Authorised Corporate Service Provider (“ACSP”); and
- Individuals delivering documents to the Registrar.
There will be two routes for verifying an individual’s identity, either:
- Direct verification with the Registrar; or
- Verification by an ACSP – a third party provider who will be conducting identity checks on behalf of clients.
An ACSP is a business that’s covered by Money Laundering Regulations, such as Professional Service Providers (for example, accountants and solicitors) and Trust and Company Service Providers (such as company formation agents).
The first changes of the IDV regime will take effect from 25 February 2025, granting Companies House the authority to conduct checks on ACSP’s to authorise them to carry out verification services. Following this, from 25 March 2025, Companies House is expected to enable individuals to voluntarily verify their identity.
The new powers when introduced will have significant legal implications for your business, so it is important to understand the rules and get it right from the start. Further changes are expected in Summer 2025 including the introduction of the “failure to prevent fraud” offence, which will come into force on 1 September 2025, for further details, see: here. With these changes fast approaching, please do not hesitate to get in touch.
How can we help?
Our specialist Business Crime & Investigation team can assist you in preparing for these changes and minimise the risk of non-compliance. Get in touch with our team of expert lawyers for bespoke advice. To receive further information and regular updates, sign up to our ECCTA hub.
