Have your say but be quick – proposal for register of overseas entities owning UK property

The Government is proposing setting up a public register showing the beneficial owners of property in the UK which are controlled by overseas entities. The proposal is part of a move to greater transparency and better anti corruption rules. Responses to the Government’s 50 page consultation paper have to be made by 15 May 2017.

The proposed register will be held at Companies House and will be similar to the people with significant control register – see our separate Insight commentary on this subject. Similar tests would apply i.e. a 25% interest or the power to appoint or remove a majority of the directors or otherwise having a right to exercise significant influence or control.

The proposal is that overseas entities will need to register their beneficial ownership information with Companies House and will then be allocated a registration number which will need to be provided on the purchase or sale of property. It will apply to freehold land and leases for 21 years or more. The consultation paper further suggests that entities that already own UK property will be given 12 months in which they can decide whether to disclose this beneficial ownership information or sell its property.

For more information about the consultation paper or if you would like help in responding please contact Daljit Singh or  David Robins.