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More UK reporting for overseas companies holding UK property

More UK reporting for overseas companies holding UK property


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A new register of ownership of non-resident companies is being created

We are all getting used to the tax reporting regime changes which brought overseas property companies within the UK Corporation Tax regime from 6th April 2020.

Now there is another change on the way.  The UK wants to know who is behind those companies so that it can better understand the ultimate beneficial ownership of property held through non-UK companies.

More UK reporting for overseas companies holding UK property

The new rules will apply to any non-UK entity owning UK property, including companies, partnerships (LLPs), foundations, etc. It also applies to individuals who have influence or control over the entity (individuals with over 25% of the shares or voting rights).

The new rules will apply to any non-UK entity owning UK property, and to individuals who have influence or control over the entity (individuals with over 25% of the shares or voting rights).

More UK reporting for overseas companies holding UK property

There will be a new register to be maintained at Companies House. The overseas entity will be required to identify its beneficial owners and register them at Companies House. This is likely to require:

  • Company name
  • Financial year
  • Name of holders of 25% – 50% of the shares or voting rights
  • Names of holders with more than 50% of the shares or voting rights

All information supplied must be verified. The information provided will be linked to the data held by the Land Registry.

Once registered the overseas entity will be given an ID number. The information provided must be updated or confirmed annually within 14 days of the entity year end.

To encourage compliance, the company officers may face criminal penalties of up to £500 per day and an overseas entity may also be faced with restrictions when trying to sell or transfer its UK property.

This legislation will be backdated to include all overseas entities disposing of UK property since 28th February 2022.

For help with this or any other taxation matter, get in touch

More UK reporting for overseas companies holding UK property

The information contained in this article is believed to be correct at the time of publication. The content of this article is intended to be a brief summary of the principal points of the legislation or proposed legislation only, and it is provided for general guidance only. It may not take into account subsequent changes in the law and of necessity it omits much detail. Taxation is a complicated subject and is subject to change. You should only rely on advice prepared specifically for you. Neither the writer nor Landlords Tax Services Ltd can be held liable for any loss arising from any act or omission by you as a result of your understanding of this article. If the subject matter is of interest you should contact us to see if there is a relevant update, and to take professional advice which takes into account your circumstances.

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