Published 9th August 2022
Register of Overseas Entities: new laws have been enacted that impact directly on non-resident companies holding UK property
New laws have been enacted that impact directly on non-UK companies holding UK property
For many years the UK Government has been concerned about the UK property market being used to conceal proceeds of crime, and in particular the ease with which non-resident companies can acquire UK property while the owners remain hidden.
The new law is effective with effect from 1st August 2022.
Register of Overseas Entities for non-resident companies
- The new law requires a UK regulated person to obtain evidence of the ownership and management of relevant companies and to file this at Companies House even if the company has not been registered at Companies House before.
- Companies House will issue an ID number to each registered non-resident company.
- The UK Land Registry will require this number if the company wishes to either buy or sell UK property.
- You cannot do this yourself as it requires certification by a UK resident regulated person.
The penalties for not registering or for supplying false or incorrect information are up to £2,500 per day and/or 5 years’ imprisonment, in addition to being unable to buy or sell UK property. If you want your company to buy or sell a UK property after 1st August 2022, it must first be registered. In any event your company must be registered by 31st January 2023. The legislation is in part retroactive.
Register of Overseas Entities for non-resident companies
The information required for registration is extensive and detailed and includes third-party evidence that you will have to gather and supply to the UK regulated person. The whole process will be quite time consuming and must be refreshed/re-worked annually.
You can find more information on the Government website or by talking to us.
For help with this or any other taxation matter, get in touch
Register of Overseas Entities for non-resident companies
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.