Residential property owners and overseas entities with UK land interests face new legal obligations from July 2025. Failure to comply could block the sale or mortgaging of your property.

Under the Economic Crime and Corporate Transparency Act 2023, all overseas property owners listed on the Register of Overseas Entities must now disclose past changes in beneficial ownership, including those that took place before their original registration date. This is in addition to the existing annual filing requirement and is part of HMRC’s wider campaign to tackle offshore tax non-compliance.

What’s Changing for Property Owners?

Since 1 August 2022, any overseas entities that own, lease, or plan to sell residential property or land in the UK have been required to register their beneficial owners and managing officers with Companies House. This register provides access to crucial ownership information and supports transparency in the UK property market.

From 31 July 2025, there’s a new obligation:

Entities must declare any changes to beneficial ownership that occurred during the “pre-registration period.”

This pre-registration window is specific to each business or trust and will fall between:

• 28 February 2022 and the end of the transition period (31 January 2023), or

• 28 February 2022 and the entity’s actual registration date (if it registered before 31 Jan 2023).

Annual Filing Still Applies

All overseas entities already listed on the register must submit an overseas entity update statement every year, confirming existing details or notifying Companies House of any updates. This is essential for maintaining legal access to the property market and avoiding enforcement action.

Penalties for Non-Compliance

Failing to submit required information on time (or omitting ownership changes) can result in:

• Substantial financial penalties

• Inability to sell, lease, or take out a mortgage on the property

• Additional scrutiny from HMRC regarding tax non-compliance

These measures apply to all property owners, including those managing commercial premises, holiday homes, or residential portfolios across the UK.

Why This Matters for Landlords and Investors

Whether you’re a UK-based advisor helping clients manage an overseas property, or a landlord with multiple holdings under different legal structures, these new rules matter.

This is especially important for:

• Landlords with residential or commercial assets

• Trusts and businesses with tenants and buildings in the UK

• Anyone preparing a property sale or considering financing against existing assets

Getting your records in order now could prevent costly legal expenses, delays, or blocked transactions in the future.

A Note on Property Owners Insurance

These changes also highlight the importance of having robust property owners insurance in place. Many policies now include cover for legal expenses, property damage, and even employers liability for larger estates. If you’re managing a holiday home, letting to tenants, or overseeing multiple buildings, look for policies that combine optional covers under one policy to reduce costs and simplify administration.

Need Support?

If you’re unsure how these rules apply to your residential property or overseas entity, HLWA can help. We work with a wide range of clients to maintain compliance, reduce exposure, and support business continuity in a changing regulatory world.

For help reviewing your ownership records or preparing your next Companies House filing, get in touch today.

Source: Companies House | 14-07-2025