Back in March 2016, I published the preliminary results of research in to the offshore interests of the Buccleuch family. Due to my election as an MSP in May 2016, I have had no time to complete this work but thanks to the International Consortium of Investigative Journalists publication of the Paradise Papers, we now have one more piece of the jigsaw. The jigsaw being who is the beneficial owner of the shares of Bucleuch estates Ltd.)

Kirkhope Holdings Ltd. (larger version of the above image here) appears to be one strong candidate for the entity that holds the wealth of the Buccleuch family. It was incorporated in the Cayman Islands on 10 July 1987 and shares are owned by Buccleuch Estates Ltd. and members of the Buccleuch family.

Over to whoever wishes to follow this up further.

 

Newspapers including the Daily Telegraph reports excitedly that the Tulchan Estate in Morayshire is on the market for offers £25 million. A closer look at the facts, however, indicates that this is not so. The Press Release published by Savills makes clear that it is the company that owns Tulchan Estate – Tulchan Sporting Estates Ltd. – that is being sold.

So who owns Tulchan Sporting Estates Ltd. (TESL)?

Savills claims that the principal shareholders are “Gillian and Leon Litchfield”. But a closer look at the facts indicates that this too is not so. They are both Directors of the Company and did, prior to 17 November 2014, own shares in the company but they no longer do so.

The current sole shareholder is Archimedes Private Office (Suisse) Sàrl (as Security Agent), a company incorporated in Switzerland at Route Des Acacias 24, 1227 Les Acacias, Geneva. This company has, in addition, a number of securities over the Tulchan Estate.

The sale of the company by its sole shareholder Archimedes Private Office (Suisse) Sàrl has three notable consequences.

First, since the sale is of a shares in TESL owned by a Swiss company, there will probably be no liability to Capital Gains Tax. The latest accounts of TESL show the assets of the company to be worth £11,462,686. The shareholding is being sold for over £25 million.

Second, since the sale is of the share in the company and not of the property, there will be no liability Land and Buildings Transaction Tax (on a sale of £25 million, that would equate to £1,115,250 lost to Revenue Scotland).

Third, there are four tenant farmers who have a registered interest to buy their farms under the Agricultural Holdings (Scotland) Act 2003. This right to buy is triggered when the owner of the farms decides to sell the farms. But the farms are not being sold and will continue to be owned by TESL. This means of avoiding the right to buy provisions was highlighted by tenant farmers back in 2007 and, more recently, the Agricultural Holdings Legislation Review Group recommended that further consideration should be given to enabling tenant farmers to exercise their right to buy when shareholdings rather than the land is traded (see Section 8.3 and Recommendation 19 here). As far as I am aware, no such consideration has been given to this recommendation.

UPDATE 24 August 0015

The Scottish Tenant Farmers Association has called for a halt to the sale. See Media Release

PSReaders should note that the author of this blog was elected to the Scottish Parliament in May 2016 and, as evidenced by the fact that this is the first blog since April 2016, anticipates a lower level of blogging activity in future.

Following my previous blog on the offshore interests of the Scott/Buccleuch family, the Panama Papers have emerged. I look forward to interrogating the 2.6 terabytes of data once it is made available for public examination in early May.

Meanwhile, I thought I should publish information sent to me by the Chief Executive of Buccleuch Group on 16 March in response to my blog and coverage of the story by Commonspace and The National.

“In view of media reports and comment on regarding Pentland Ltd., a wholly-owned subsidiary of Buccleuch Estates Ltd., and the Stage 3 debate on the Land Reform (Scotland) Bill tomorrow, Buccleuch wishes to clarify the position of this company.

1. Pentland Ltd is a UK trading company which is subject to UK taxation. All tax that has been due from Pentland Ltd has been paid in the UK throughout the existence of the company.

2. All directors of Pentland Ltd are UK residents and UK taxpayers and are members of the Buccleuch family.

3. The ‘beneficial’ owners of Pentland have never been concealed and any land holdings owned by the company have been clearly identifiable as ‘Buccleuch’ land holdings.

4. Pentland was originally registered in the Cayman Islands in the 1970s, not for taxation purposes but to accommodate a range of international assets and investments.

5. Since the late 1990s, the assets of Pentland Ltd have been wound down and the company has traded exclusively in the UK. It is not permissible to re-register the company which currently owns a small property development in Canonbie, Dumfries and Galloway.”

This is a very interesting statement and reveals the sophistry at the heart of discussions about the use of secrecy jurisdictions.

Take the first sentence, for example.

Pentland Ltd. is a company registered at HSBC International Trustee Ltd., PO Box 484GT, Grand Cayman, Cayman Islands.

That is a fact.

This cannot be spun as “Pentland Ltd is a UK trading company”

Two other observations are worth making.

The statement suggests that Pentland Ltd. has had an association with the Buccleuch family since the 1970s and point 4 explicitly claims that Pentland Ltd. was originally registered in the Cayman Islands in the 1970s. In fact, Pentland Ltd. was not incorporated until 1990 as evidenced by its incorporation certificate here. So what was going on between the 1970s and 1990?

There is also some confusion about the relationship between Peatland Ltd. and Buccleuch. In this media statement from 2009, it is stated that “Pentland Ltd is a company under the ownership of the Buccleuch Group” when in fact it did not become a wholly owned subsidiary until 2013. Indeed in 2002, Anderson Strathern had written to the Keeper of the Registers of Scotland in plain terms that “Pentland Ltd is registered in the Cayman Islands and is not part of the Buccleuch Group.” From the statement above, it would appear tat it has always been part of the Buccleuch Group.

Finally..

We know nothing more about Hayes One Ltd., Clifton House, 75 Fort Street, PO Box 1350, Grand Cayman, KY1-1108, Cayman Islands.

And we still do not know who is the beneficial owner of of Buccleuch Estates Ltd.and how this is structured.