A new UK register introduced to improve transparency about who owns land and property in the UK has come into effect.
The new Register of Overseas Entities has been established as part of the Economic Crime (Transparency and Enforcement) Act 2022 and is designed to reduce the risk of money laundering through property.
The idea for the register was first announced in 2016, but it was then hit by a series of delays.
See also: Scottish land ownership to became more transparent
It was fast-tracked through parliament in March, following concern about illicit money in the UK originating from Russia, in response to the invasion of Ukraine.
The register is held by Companies House and requires any “overseas entities”, such as foreign companies or other organisations, that want to buy land or property in the UK to declare who will be their beneficial owners and/or managing officers.
This requirement will also apply retrospectively to overseas entities that bought property or land on or after:
- 1 January 1999 in England and Wales
- 8 December 2014 in Scotland
Failure to comply with the new law may result in fines of up to £2,500/day or a prison sentence of up to five years.
Entities that already own land or property in England, Wales and Scotland have been given six months to register.
Any entities that disposed of property or land after 28 February 2022 will also need to register and give details of that disposal.
In Northern Ireland, the need to register only applies to land or property bought from 1 August 2022, which is the day it came into effect.
After registering, the overseas entity will be assigned a unique overseas entity ID, without which it will not be possible to register at HM Land Registry as the owner of any land.
A beneficial owner is any individual or entity that has significant influence or control over an overseas entity, and could be an individual, trustee, government or other legal entity, such as a company.
Where there is no beneficial owner, or if it is not possible to identify all of them, details of the managing officer must be provided, which will be the director, manager or company secretary of the overseas entity.
