The UK is the first country to bring in this type of register and so there are no other models to draw on and the government is intending to “…proceed cautiously , striking the right balance between improving transparency and minimising burdens on legitimate commercial activity”.
The Government are concerned that bringing external investors into a family business can dilute the founders down below a 5% stake in a company. The 5% threshold may therefore hold back the seeking of external funds and therefore hold back growth in a business.
Setting the right price for transactions between group companies is not straightforward and is an issue which tax authorities globally are increasingly taking a keen interest in.
These rates were always intended to rise over time but with so many other regulatory matters to keep up to date with, it seems that this is the appropriate time for a reminder of the imminent increases.