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The government has now released its response to the draft legislation issued in 2018 for the creation, to take effect from 2021, of a register of beneficial owners of overseas entities owning UK property.

The draft bill was first scrutinised by a joint committee of MPs and Lords who made recommendations which the government via the BEIS have commented upon in the published response.

Several of the recommendations have been deemed unnecessary by the government including:

The government has however agreed to consider many of the joint committee recommendations, the key of which are:

The committee had serious concerns over the use of offshore trusts and the government has confirmed:

One interesting point made in the report is that in 2018 the Financial Action Task Force (FATF) found that the UK has the strongest Anti Money Laundering regime of over 60 countries assessed to date, and said that the UK “is a global leader in promoting corporate transparency”.

Links to our guides:

Register of persons with significant control

Register of persons with significant control (client briefing)

External links:

Draft Registration of Overseas Entities Bill: Government Response to Joint Committee Report 2019

BEIS research paper: Understanding the potential impacts of the proposed register through qualitative interviews with industry stakeholders