The Register of Overseas Entities, mandated by the Economic Crime (Transparency and Enforcement) Act 2022 in the UK, requires overseas entities engaging in property transactions in the UK to register with Companies House. They must disclose information about their beneficial owners or managing officers. Failure to comply can result in fines, imprisonment, or transaction restrictions. The register aims to enhance transparency and combat economic crime. Overseas entities receive a unique ID for property transactions and are encouraged to use UK-regulated agents for efficient registration.

Overseas Entities with UK Investment Property/Properties (HMRC)

The Register of Overseas Entities mandates that overseas entities owning UK property disclose information about their beneficial owners and relevant trusts by January 31, 2023. This is vital for tax compliance as HM Revenue and Customs (HMRC) uses this information to identify tax non-compliance among overseas entities and beneficial owners. Key tax implications for those managing overseas entities include Stamp Duty Land Tax (SDLT) charges, Annual Tax on Enveloped Dwellings (ATED) returns, and potential UK tax liability if the company is centrally managed and controlled in the UK. Non-resident trustees may face non-resident Capital Gains Tax and Inheritance Tax on UK property. UK resident beneficial owners must also be aware of SDLT surcharges when purchasing property in England and Northern Ireland. Understanding these obligations is crucial for compliance and avoiding penalties.