New ‘ROE Bill’ draft published
Following from the recent public outcry regarding the lack of ‘transparency’ in the UK property market, a new ‘ROE Bill’ draft has now been published.
The ‘ROE Bill’, an abbreviation for ‘Registration of Overseas Entities Bill’, was recently published by the Department for Business, Energy and Industrial Strategy (BEIS) and sets out ‘provisions’ that shall establish a beneficial ownerships register of overseas entities that own UK property.
Furthermore, within the draft, provisions regarding the ownership of property in the UK by overseas entities has been set out, so to provide further clarification and ‘transparency’ for the property market overall.
High Net Worth Individuals, also known as ‘HNWI’, are predicted to be the most impacted. This is because legal entities from overseas are used by HNWI when purchasing properties.
For instance, those most likely to be impacted (as outlined by the UK Government) by the changes are:
- Any overseas legal entities which have property in the UK and are considering to buy more UK property.
- All advisors and services providers for the legal entities who own UK property
- Estate agents
- Conveyancing solicitors
- Civil Society and Transparency campaigners
So, what exactly are the new changes?
The new ROE bill upon implementation will now mean that all those wishing to purchase property from overseas, must now register wit ha ‘Registered Overseas Entity’. From this, the property owners will need to keep all information up to date consistently.
The ROE Bill follows from a recent initiative of the UK Government to tackle Money Laundering within the UK.
To read more about the ROE bill, please see the draft here
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