Regulations have been made commencing the remaining provisions of the Economic Crime (Transparency and Enforcement) Act 2022 (ECA) relating to the new register of overseas entities owning UK property.
The new register of overseas entities owning UK property, introduced by the ECA and operated by Companies House, came into effect on 1 August 2022.
The ECA requires overseas entities that own, or have a lease of more than seven years over, land or property in the UK to be listed on the register at Companies House. If they fail to register, or to comply with the duty to update the information, in most cases this will affect the ability of the entity to sell or lease the land, or create a charge over it, as the other party would be unable to register the transaction with the Land Registry. The ECA also sets out various sanctions that could be imposed on the entity, including fines for directors if they fail to comply.
These latest Regulations, among other things, bring into force the requirement for registered overseas entities to update their information at Companies House annually (or confirm that the information on the register is up-to-date). The information in the annual update (or confirmation) must first have been independently verified by a "relevant person" (such as an accountant or regulated company-service provider). The requirement will come into force on 16 January 2023.
We have published a snapshot on how the regime is impacting land transactions.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
