Are you wondering what the laws are around foreign entities owning property or land…especially with Brexit? With the amount of foreign investment in the UK, there’s certain laws and regulations surrounding owning property or land. The regulation which determines this is called the Register of Overseas Entities.

Foreign, or overseas, entities include companies, partnerships or legal bodies governed by law or territory outside of the UK. It does not include an individual or a non-UK trust.

Companies House have recently announced a revision of the law surrounding foreign entities owning property or land through the through the new Economic Crime (Transparency and Enforcement) Act 2022, as of 1st August 2022. Below breaks down the exact details of the new Register of Overseas Entities.

What Is The New Register Of Overseas Entities?

The new public register at Companies House was launched on the 1st August 2022. Overseas entities who want to buy, sell or transfer property or land in the UK, must register with Companies House. They also need to declare who their registrable beneficial owners or managing officers are.

Overseas entities who already own or lease land or property in the UK will also need to register with Companies House and tell HMRC who their registrable beneficial owners or managing officers are by 31st January 2023.

This applies to overseas entities who bought property or land on or after:

1st January 1999 in England and Wales

8th December 2014 in Scotland

Entities that disposed of property or land after 28th February 2022 will also need to give details of those dispositions.

Further guidance from Companies House and HM Land Registry can be found here.

What Is A Qualifying Estate?

A qualifying estate is deemed as either:

A freehold estate (an estate in land which provides the holder of the estate with rights of ownership)

A leasehold estate (An estate in land which provides the holder of the estate with rights of possession and use of the land but not ownership) of land granted for a term of more than 7 years.

If you’d like to know any further information on registering as an overseas entity, or anything accounting related for that matter, please do not hesitate to get in contact with us.