Will the introduction of a public register of overseas ownership of property create an additional and unnecessary layer of regulation that could discourage future investment in the UK from foreign buyers?
A (Fifth) Money Laundering Directive (5MLD) came into force in July 2018, however, what is yet to be determined is how the implementation of 5MLD will fit with the Draft Registration of Overseas Entities Bill, which is set to introduce a public register of beneficial ownership of overseas entities that have interests in land in the UK (Overseas Register).
Assuming the draft bill becomes law, any overseas entity wishing to purchase UK property that does not fall within the stated exemptions will be required to provide details of the ultimate beneficial owners to Companies House, to be entered on the Overseas Register.
Pieter Boodt, a senior associate in our real estate team, discusses how this overseas register may affect investors who prefer to conduct their business legally but privately, and whether this will lead to a decrease in future overseas investment in the UK.
How transparent should UK property ownership be? is available to read on the React News website. However, you must be a subscriber to read this content.
Pieter is a senior associate in the real estate team. He advises on a broad range of commercial and residential real estate transactions, including acquisitions, disposals, landlord and tenant matters, development and real estate finance.