Date: 01/08/2022 | Business & Professional Services, Corporate
Who: The new regime applies to any legal entity governed by laws of a country outwith the UK.
What: This means that an OE will need to register with Companies House if it has any relevant interest in UK property. Relevant interest means since 1 January 1999 in England, 8 December 2014 in Scotland or 1 August 2022 in Northern Ireland the OE owns UK property or is leasing it for more than 7 years in England, 20 years in Scotland or 21 years in Northern Ireland.
To register, the OE will need to provide details about itself and declare that it has not made a relevant disposal since 28 February 2022 or provide details of that transaction.
In addition the OE registering will have to either:
This information will need to be updated annually and failure to comply will be a criminal offence.
The details of beneficial owners will require to be verified by a registered UK agent. It is not yet clear what will be required to achieve verification.
Why: Failure to comply with the registration requirements will mean an OE cannot register their rights in property in the public registers.
In addition, an OE will not be able to sell, lease, assign or surrender a lease or grant a charge over its property unless it has been properly registered.
When: OE’s must register by 1 February 2023 at the latest or prior to making a relevant disposal. Failure to do so is a criminal offence. Fines of up to £2,500 or prison sentences of up to 5 years can be imposed.
There are no exemptions currently but holding a charge over property does not bring the charge holder within the regime.
Further details of how the register will operate in practice are awaited, in particular how the identity of beneficial owners will require to be verified.
If you need advice on registering your OE please contact a member of our Corporate Team.
Written by
Latest Updates
Keep your organisation up to date with the latest opportunities and changes in commercial law with regular insight and updates from the experts at Davidson Chalmers Stewart.
A typical law firm? Not really. But a partner for the people and businesses we work with? Absolutely.
Our determination to do things a better way is nothing without our clients. So if you like what you see and think we’d make a good team, let’s talk. Pick up the phone and call us direct or make specific enquiries to our individual email addresses across the website. Alternatively use the form to submit general questions and comments.
Either way, we’ll get the message.
Edinburgh
t0131 625 9191Glasgow
t0141 428 3258Galashiels
t01896 550991Edinburgh
Davidson Chalmers Stewart
12 Hope Street
Edinburgh
EH2 4DB
DX ED408
Galashiels
Davidson Chalmers Stewart
Waverley Chambers
Ladhope Vale
Galashiels
TD1 1BW
Want to get even more insight from Davidson Chalmers Stewart?
Keep your organisation up to date with the latest opportunities and changes in commercial law with regular insight and updates from the experts at Davidson Chalmers Stewart.
Copyright © 2023 Davidson Chalmers Stewart. All Rights Reserved