14 FEBRUARY 2023
The Economic Crime (Transparency and Enforcement) Act 2022 legislated for all overseas entities (non UK-resident companies, partnerships, foundations and corporate trustees) that own or lease (for a term exceeding 7 years) land or property in the UK to register as overseas entities with Companies House and disclose details about their beneficial owners before the deadline of 31 January 2023. Overseas entities that disposed of their UK property since 28 February 2022 also need to register.
The rules exclude the ownership of property that was acquired before:
- 1 January 1999 in England and Wales
- 8 December 2014 in Scotland
- 1 August 2022 in Northern Ireland
Any overseas entity that acquired UK property after the dates listed above and do not fall within any exemption will need to register to obtain an overseas entity identification number (“OEID”) before disposing of the property.
Any overseas entity acquiring property in the UK going forward that has not already been registered will need to obtain an OEID before it can be registered as the proprietor at HM Land Registry.
The legislation requires an annual update of the information submitted to Companies House about the overseas entity and its beneficial owners.
It is estimated that there are approximately 32,500 overseas entities owning UK land that needed to register, of which approximately 26,000 have registered. The deadline for registration of 31 January 2023 has now passed, and there are possible daily fines and criminal proceedings to be levied against overseas entities that fail to register or that register after the deadline.
Although there are already possible sanctions, it is important that overseas entities that have not registered yet proceed to do so with the minimum of further delay. Clermont UK can assist you through the process and ensure the registration is completed swiftly. As a Companies House approved verification agent, we can attend to the verification of the information provided as well as the filing of the overseas entity at Companies House.
We have also been contacted by overseas entities that have obtained OEID’s but are concerned that corrections may need to be made to the information submitted. Clermont UK can submit updated filings where errors are identified.
Please contact us if you need to discuss any register of overseas entity matters. We would be happy to assist and to ensure compliance with the legislation.
Gavin Lief MD (UK)
gavin@clermonttrust.com Phone: +44 208 236 1433
