Further to our previous post on the New Registration Requirements for Overseas Entities Buying Land in the UK, the Register of Overseas Entities (“ROE”) at Companies House is now live and was launched on 1 August 2022.
Overseas entities who purchased a freehold estate or a lease (with a term of more than 7 years) in the UK, on or after 1 January 1999, now have six months to register on to the ROE. The deadline for registration is 31 January 2023.
An overseas entity (or an officer of that entity who is in default), who fails to comply with the registration requirements will commit a criminal offence, punishable by: 1) a daily fine not exceeding £2,500; 2) imprisonment of up to five years; or 3) both.
Overseas entities will need to provide “required information” of the overseas entity, as set out in the Economic Crime (Transparency and Enforcement) Act 2022 (“the Act”), and also “required information” of their registrable beneficial owners, which is also set out in the Act. This information will need to be verified by a third party who is either an external accountant, independent legal professional, or an estate agent or letting agent who is regulated by HMRC. This verification lasts for three months from the date it is made, and the person providing the verification will need to retain this information for a period of 5 years. For those professionals who may be required to complete verification checks, technical guidance is available; Register of Overseas Entities: guidance on registration and verification.
Overseas entities who are required to register should act now and seek independent legal advice if they have any concerns about the ROE.
Further guidance can be found on the Government website.
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