Register of Overseas Entities – What You Need To Know

The Register of Overseas Entities came into force on 1 August 2022 as part of the UK governments response to the Russian invasion of Ukraine and forms a key part of the government’s strategy to tackle global economic crime.

The register requires overseas entities more often overseas companies, that own UK property or land to declare their beneficial owners or managing officers. More importantly, overseas entities cannot buy, sell, transfer or lease land, or create a charge against the land in the UK unless they’ve registered with Companies House.

Overseas entities in scope who already owned property or land in the UK needed to register within a 6-month transition period, by 31 January 2023.

Current numbers

Under the new legislation, UK-regulated agents supervised under the Money Laundering, Terrorist Financing and Transfer of Funds Regulations 2017 must complete verification checks on all beneficial owners and managing officers before they can be registered. 

Companies House state that more than 26,000 overseas entities have registered to date, and law enforcement organisations, journalists, and the general public can now access this data on their Find and update company information service. There have already been more than 220,000 searches of the data, which shows the register is meeting the policy intent of increasing transparency about who owns UK property and land.

What if you have not registered yet?

Restrictions have already been placed on land titles, which means those that have not complied cannot freely lease, charge or dispose of their land. This is a significant and effective sanction for non-compliance.

Companies House are also writing to those who have not yet registered to remind them what the consequences are if they do not comply. Those who continue to fail to register may also be subject to financial penalties or criminal prosecution.

Overseas entities will need to update their information on the register every year. We are now seeing clients coming to us who have not registered, being unable to complete sales and purchases of property without first being registered.

If you are an overseas company or entity, get in touch on 01902 711370 or email enquiries@uklandlordtax.co.uk and we can help you meet the new requirements.

If you enjoyed this article you should read about 2023 updates regarding CGT & divorce or about landlord tax next.

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