After adoption of the Economic Crime (Transparency & Enforcement) Act 2022 all overseas entities that own or planning to acquire real estate in the UK need to register with Companies House starting from 1st August 2022.
No applications can be made, according to the act, to HM Land Registry by the offshore entity as proprietor of land before such entity has obtained a code of identification. Moreover, the Act has prohibited overseas entities to transfer, lease or charge their land unless they have obtained an ID number from the HM Land Registry. The overseas companies that already own the land in the UK shall comply with the registration rules within 6 months.
The register of overseas entities holding UK property was launched on 1 August 2022. It is planned that the land registration elements of the Act will come into force on 5 September 2022. Such short deadlines are caused by the necessity to take action by the UK government following the Russian invasion to Ukraine.
If you are an overseas entity landowner 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, you will still have to comply with other reporting obligations in the Act, according to the HM Land Registry website.
If you would like to find out more regarding the new rules feel free to contact us for free consultation.