Launched on 1st August 2022, the new rules affect overseas entities who want to buy, sell or transfer property or land in the UK. So what is the new Register of Overseas Entities and what does it mean?
What is The Register?
Created under The Economic Crime (Transparency and Enforcement) Act 2022, the new Register of Overseas Entities is held by Companies House. Its intention is to increase transparency in the ownership of overseas entities that own or want to buy, sell, transfer or lease UK land or property with the purpose of making it harder for organised criminals to invest in such assets and remain anonymous.
What is classed as an ‘overseas entity’?
An overseas entity is defined as a legal entity which is governed by the law of a country or territory which is outside of the UK.
What does the Register mean?
From 1st August 2022, overseas entities who own property or land in the UK must register on the Register of Overseas Entities and ensure that this register is updated annually. In doing so, entities will also receive an Overseas Identities ID without which they will be unable to undertake land and property transaction in the UK.
Information must be provided on:
- The entity’s registrable beneficial owners or managing officers
- The name of the entity, its legal form and governing law
- The country in which the entity was formed
- The entity’s registered office address, correspondence address and email address
Overseas entities that already own or lease land or property in the UK must conform to the new Register if the land or property was purchased:
- in England and Wales on or after 1 January 1999
- in Scotland on or after 8 December 2014
- in Northern Ireland on or after 1 August 2022
For overseas entities who have owned land or property in the UK for more than seven years, they have until 31st January 2023 to submit their application to register with Companies House.
If an overseas entity fails to comply with the provisions, (either by failing to register within the timeframe, failing to update information as necessary or by providing false information), the entity and its owners could be criminally liable and may receive harsh penalties.
Who does it apply to?
The Economic Crime (Transparency and Enforcement) Act 2022 applies to non-UK entities with a legal “personality” including companies, LLPs, partnerships and charitable organisations. This includes those who are already UK tax resident.
For the purpose of the Register, entities within the jurisdiction of Jersey, Guernsey and the Isle of Man are all deemed non-UK resident and are therefore subject to the act and its requirements.
Click here to find out more about the Register and how to ensure you remain fully compliant: https://www.gov.uk/guidance/register-an-overseas-entity
If you would like to discuss the Register in further detail and receive some more tailored advice, contact our Transaction Support Manager, Jason Hydon.
Email: [email protected]
Phone: 02476 306029
