Offshore & Non-UK Companies That Own UK Property

If you own property through a non-UK company, this article will serve as a valuable source of information as to how the new Register of Overseas Entities will affect anyone that fails to register in time, and how it could adversely affect you.

As a result of the passing of the Economic Crime (Transparency and Enforcement) Act 2022, the Register of Overseas Entities came into force in the UK on the 1st of August 2022. Specifically, this legislation applies to overseas companies that have purchased land or properties in the UK on or after the 1st of January 1999 for England and Wales, and on or after the 8th of December 2014 for Scotland. 

What does this mean for you? 

As an overseas-based UK property investor, you are required to register with Companies House by 31st January 2023 if you wish to operate legally. In the event that you fail to comply with the Act, you may be subjected to fines of up to £2,500 per day, or you may be sentenced to serve a prison sentence for up to five years. Furthermore, there are restrictions that you will have to follow when it comes to buying, selling, transferring, leasing or charging property or land in the UK. 

How to Register

To apply to register as an overseas entity and its beneficial owners you will need to complete the following steps: 

• Sign up for a Companies House account or create one if you don’t already have one.
• You will need to provide the name and email address of someone Companies House can contact about the application if they have any questions.
• Provide information about the beneficial owners or managing officers of the overseas entity as well as the overseas entity itself.
• To inform Companies House of the UK-regulated agent that can perform the verification checks for the company.
• It is important to provide information about trusts (if applicable).
• In order to pay the £100 registration fee, you will need a credit or debit card – you cannot pay with a Companies House payment account at the moment.

Further details on what is required can be found at Register an overseas entity and tell us about its beneficial owners.

It is important that you complete the initial registration process yourself, the verification process can be performed by any of the following entities outlined below:

• credit institutions 
• financial institutions 
• auditors, insolvency practitioners, accountants and tax advisers 
• legal professionals 
• trust or company service providers 
• estate agents and letting agents 

UK Landlord Tax is also in the position to complete verification on your behalf, please feel free to get in contact with us for a quote for this service.

Ongoing requirements

An overseas entity must file an annual update within one year of being registered and every year thereafter to their accountants. In this way, their accountants will be notified of any changes to confirm that the information they hold is still accurate. This must be filed within 14 days of the due date. Any updated information can also be filed earlier. 

Talk to us now about your company’s overseas entity registration and compliance by getting in touch at 0800 907 8633, via tax@fixedfeetr.com or via our online contact form to speak to one of our specialist tax advisors.

If you found this article informative then why not read our guide to capital gains tax for UK non residents or tax on rental property income next?

Thandi Nicholls Ltd
Creative Industries Centre
Glaisher Drive
Wolverhampton
West Midlands
WV10 9TG