The 31st of January 2024 marked one year since overseas entities owning UK property were mandated to register with Companies House. By creating the register, the UK aims to increase transparency of the beneficial owners of UK property and land owned by overseas entities.
The latest data from Companies House shows that there has been a compliance rate of around 90% for entities successfully registering across over 290,000 registered overseas entities.
The update statement process has been in place since September 2023, where all entities on the list are required to submit an annual statement to declare whether or not there have been any changes to their Beneficial Owners (“BO”) or company information within that period. If so, any updates must be verified by a Regulated Agent. Failure to submit this vital update statement is not taken lightly; it’s considered a criminal offence that triggers restrictions on the associated property.
Notifications for the late filing of update statements and penalty letters for non-compliance for original registration oversights are being issued. This underscores the importance of submitting your update statement within 14 days from the date of your original application each year.
Behind the scenes, Companies House is working on developments to enhance the system, with the latest feature expected to enable companies to de-register after a property has been sold.
The Economic Crime and Corporate Transparency Act 2023 is also set to introduce further updates to the legislation governing the Register of Overseas Entities process.
How can we help you?
For those affected, as a UK Firm, regulated by the ICAEW, we can offer a guiding hand in verifying the update information required by Companies House and can assist you in filing your entity’s update statement.
To book an appointment or to find out more about our overseas registration service please contact Tamara Howe or Tamara Lopes.
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