The fast-tracked Economic Crime (Transparency and Enforcement) Act 2022 received Royal Assent on 15 March 2022, creating a new public “register of overseas entities”. UK entities already have an obligation to disclose their beneficial ownership information under the PSC regime. However, this new register will apply where the UK real estate asset is held by a non-UK legal entity.

This register will capture any overseas entities who hold freehold titles or leasehold titles of longer than seven years in England and Wales (a Qualifying Estate). The register will document the name, address and start date of the person who is the beneficial owner as well as the nature of the person’s ownership. This information must then be updated every 12 months.

The scope of a Qualifying Estate is wide-reaching. For any Qualifying Estate that has been acquired since 1999 and still owned by an overseas entity, then that entity will be required to register. Additionally, any property dealings post 28 February 2022 will require the overseas entity to be registered.

It is not yet clear when the register will be implemented but with the deadline for compliance six months from implementation, overseas entities that could be caught by the new legislation should assess their position immediately to ensure compliance.