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Public register of beneficial ownership
In 2016, the then Prime Minister, David Cameron, announced a proposal to establish a public register providing details of the beneficial owners of overseas companies holding UK commercial and residential property. Following a period of consultation, the Government has now issued a "Call for Evidence" to obtain further views on the design of the policy and evidence on its possible effects. Representations are to be made by 15 May 2017.
Who is affected?
The proposed new measures will require disclosures not only from foreign companies wishing to buy relevant property in the UK for the first time, but also those companies which already own relevant UK property. Relevant property for these purposes will include freeholds and leaseholds with an original lease term of more than 21 years. The policy will also extend to other forms of legal entity which can hold property.
In order to obtain a registration number, which will be required before the entity is able to buy, sell, create a lease or create a legal charge over, relevant property, the entity will need to lodge certain information regarding the identity of its beneficial owners. Beneficial owners for these purposes will broadly include those who hold more than 25% of the shares or voting power of the entity, those who can control the composition of its board of directors and others who can exercise "significant influence or control".
