UK Register of Overseas Entities: expect the Act to come into force very soon so plan-ahead.
HM Land registry blog has published a timely update on The Economic Crime (Transparency & Enforcement) Act 2022, some highlights are below, and the full blog is here
And as HMRC says - expect the Act to come into force very soon so plan-ahead.
- The Economic Crime (Transparency & Enforcement) Act 2022 requires OVERSEAS ENTITIES that own or acquire property in the UK to register with Companies House.
- The exact timetable for commencement has not yet been confirmed, however, it is expected to be very soon.
- Companies House will publish guidance on how to register the information they will require about persons who own or control the overseas entity.
- Once registered, Companies House will issue the overseas entity with an Overseas Entity ID (or “OE ID”).
WHAT SHOULD NEGOTIATERS BE DOING NOW?
- Anyone negotiating to buy, lease or take a mortgage from an OVERSEAS ENTITY, MUST REMEMBER:
- The provisions of the Act preventing the registration of dispositions by OVERSEAS ENTITIES that already own land will only affect the application to HM Land Registry to register the disposition if they lodge it more than six months after the Act commences.
OVERSEAS ENTITY LANDOWNER [OEL]
- For overseas entity landowner’s [OEL] any disposition you make of land you already own can be registered within six months of commencement even if you do not have an overseas entity ID when you make the disposition.
- However, OELs still have to comply with other reporting obligations in the Act.
- OELS May also find that the person taking the disposition still asks you to register with Companies House before they will proceed.
- An OEL that owns property or is planning to purchase property should start planning for these requirements now.
- The latest blog posts published by Companies House provides info about the secondary legislation for the Register of Overseas Entities.
- Companies House will publish detailed guidance on GOV.UK in the coming weeks.
- If, after considering this and the guidance provided by Companies House you do not know what effect the Act will have on your plans, you should take legal advice.
- Remember – plan-ahead and expect the Act to come into force very soon