Commercial Update: Register of Overseas Entities

New rules came into force on 1 August for property owners to declare ownership on a formalised register.

The rules will now force people who mask and hide property ownership through shell companies and offshore structures to provide clarity of ownership by declaring it on a new Register of Overseas Entities.

This change is governed by the Economic Crime (Transparency and Enforcement) Act 2022. The Act was fast tracked in response to the invasion of Ukraine but its effect will be more far reaching, creating a register of overseas ownership of UK property. The Act is retrospective and carries penalties both financial and custodial.

Whilst no immediate effects are expected on the residential or commercial property markets, this register will bring transparency of UK property ownership a little closer. The Act will continue the drive to enhance the information available in relation to overseas money and will continue the work of AML legislation. It will also close the UK’s property door a little further on those who wish to hide unlawfully gained wealth in UK property.