Changes To UK Company Law

There were significant changes to accounting and company law in the UK in 2015. The remaining amendments under the Small Business, Enterprise and Employment Act are to come into force this year.

Following are some of the key changes for businesses in the UK over the past year, and a summary of what's ahead in the next 12 months.

Update of existing UK GAPP to FRS101-102

Companies that have prepared financial statements under the old UK GAPP can no longer delay the conversion to the new legislation to comply with FRS 101 or 102, which came into force for accounting periods commencing on or after 1 January 2015.

FRS 102 is the main new UK GAAP standard which will replace all of the old Financial Reporting Standard's and Statements of Standard Accounting Practice.

FRS 101 reduced disclosure framework creates an entirely new type of standard for the UK. It allows a company to apply the recognition and measurement rules of IFRS, but with reduced disclosures.

The exception to the above is for companies that have used the FRSSE (Financial Reporting Standards for Smaller Entities). For year ends falling within 2015 they can continue to use the FRSSE 2015.

Abolishment of bearer shares

Bearer shares can no longer be issued and companies that previously issued them had to notify holders of existing bearer warrants of their right to surrender them. This surrender period is due to end on 26 February 2016.

Register of beneficial ownership

The requirement to maintain a register of beneficial ownership has been introduced and companies must disclose details of all persons with significant control (PSCs), ie those having ownership or control of a 25% interest in the company. Companies will be required to keep a register from January 2016, and will have to file information about PSCs at Companies House from 30 June 2016.

Companies House administration

Since October 2015, companies have the ability to receive all Companies House communications electronically, and register a trading address in addition to...