Economic Crime (Transparency and Enforcement) Act 2022 (the "Act") – Answering Your Questions
October 07, 2022
Introduction
This note summarizes those provisions of the Act applicable to England and Wales that deal with the new Register of Overseas Entities ("ROE") that has been established at Companies House in the UK. It seeks to identify and, where possible, answer questions that have been raised in the weeks since key provisions of the Act have come into force.
Broadly, the Act requires disclosure of the beneficial ownership of certain types of land and property situated in the UK if this is held by an Overseas Entity ("OE").
The registration obligations introduced by the Act are intended to increase transparency of non-UK ownership of UK land and property.
Key Dates
- 1 August 2022: The Act came into force.
- 5 September 2022: The provisions of the Act relating to land and property came into force.
- 5 September 2022 onwards: If Qualifying Land (a) is owned by an OE, and (b) was acquired by that OE on or after 31 December 1998, the Land Registry is required to enter restrictions on the registered title preventing the OE from disposing of Qualifying Land, granting a lease of more than seven years out of Qualifying Land and/or creating a legal mortgage over Qualifying Land, unless it is registered on the OE.
- 1 August 2022 – 31 January 2023 (the "Transition Period"): An OE that already owns Qualifying Land will be able to deal with it during this period without registering on the ROE – although there will be an obligation for the OE to submit details of a disposal, legal mortgage or lease of more than seven years to Companies House by 31 January 2023, as discussed above.
- 1 February 2023 onwards: The registration of a transfer of Qualifying Land, grant of a lease of more than seven years out of Qualifying Land and/or creation of a legal mortgage over Qualifying Land at the Land Registry by an OE will be prohibited unless the OE is registered on the ROE, or the OE is exempt from registration.
