London Daily

Focus on the big picture.
Saturday, Sep 26, 2026

Register of offshore owners of UK properties full of loopholes, say experts

Register of offshore owners of UK properties full of loopholes, say experts

Long-delayed and apparently feeble enforcement measures will fail to tackle corruption, it is predicted

The government’s long-delayed register of offshore owners of UK property will fail to tackle corruption unless multiple loopholes in the draft legislation are closed, experts have warned.

On Monday, the government announced it would introduce a “register of overseas entities” requiring anonymous foreign owners of UK property to publicly declare their true identities as part of its draft Economic Crime (Transparency and Enforcement) bill.

The legislation would require any overseas owner of a UK property, including an owner hiding behind secrecy devices such as shell companies, trusts or foundations, to disclose their identity to Companies House.

It would apply to any property in England and Wales bought by an overseas company within the past 20 years. Failure to comply with the register would be punished with a prison sentence of up to five years, or daily fines of up to £500.

Experts warned that the draft bill’s apparently feeble enforcement measures and seemingly endless delays to implementation would severely hamstring its effectiveness.

Steve Goodrich, head of research and investigations at the anti-corruption group Transparency International UK, said the bill’s proposed £500-per-day fine for non-compliance would be laughed off by corrupt officials.

“Where prosecution isn’t really an option, because for instance the owner lives in Russia, which doesn’t extradite its citizens, then you’re left with fines only. £500 a day is small change for those with deep pockets,” he said.

“We’re calling for graduated sanctions, increasing fines over a certain period, with the prospect of confiscation where non-compliance is stubborn.”


The timescale for the register being brought into force remains vague. The government announcement says “implementation will proceed at pace” once the bill has been passed by parliament, though it provides no details on dates.

Goodrich said the draft bill contained an 18-month “transition window” to allow overseas owners time to comply with the rules. “Those looking to make a swift exit for the door have it held wide open for them,” he complained.

A register of offshore property owners was first proposed in 2015 by David Cameron, as part of a raft of measures to prevent criminals and corrupt foreign officials from laundering money through expensive UK property.

Legislation to enact it has been delayed for years, amid suspicion that lobbyists and some politicians have sought to delay it.

Questions also remain as to what checks will be conducted to ensure that those registering under the new law are telling the truth, according to Graham Barrow, a financial crime consultant.

Barrow has for years warned that Companies House, which administers company registration in the UK, allows company owners and directors to file obviously false information. Last month he identified a newly registered UK company with share capital of £146tn, which is more than twice the GDP of the entire world.

He said that unless the government accelerated plans to require Companies House to verify company information, overseas owners of property could circumvent the new register by owning their offshore company through the UK, and providing incorrect details to the Companies House.

On Monday the government released a white paper about Companies House reform, which sets out the government’s position on the issue and is a precursor to possible draft legislation.

“I don’t understand why we’re getting a white paper on something that the government has consulted on, sat on, for years,” Barrow said.


 


Newsletter

Related Articles

0:00
0:00
Close
Prosecutors Seek More Than 10 Years in Prison for Former DUP Leader Jeffrey Donaldson
UK Provided £66 Million in Emergency Security Funding for Mosques After Southport Disorder
Manston Inquiry Examines Role of Government Decisions in 2022 Overcrowding Crisis
Justice System Capacity Pressures Raise Concerns Over Release of Sex Offenders
UK Food and Drink Trade Deficit Widens to Record £21.1 Billion
UK Releases Climate Security Findings Previously Withheld Under Starmer
TalkTalk Races to Sell Consumer and Broadband Businesses as Administration Threat Looms
NHS Bodies Impose Minimum Two-Year Waits for ADHD and Autism Assessments
Andy Burnham Pledges £210 Million to Revive Boarded-Up High Streets
UK Borrowing Reaches £18.3 Billion in August Ahead of Autumn Budget
Vistry Cuts Profit Outlook as Losses Deepen and Private Home Sales Weaken
Reported Assaults on Great Britain’s Railways Rise Sharply
Far-Right Activist Daniel Thomas Arrested After Channel Dinghy Slashing
Ukrainians in Britain Face Greater Homelessness Risk as Host Payments Are Cut
Scottish Drug Deaths Rise as Synthetic Opioids Spread
UK Diesel Prices Approach Record High as Energy Costs Intensify
UK Food and Drink Trade Deficit Widens to Record £21 Billion
Britain’s Largest Planned AI Supercomputer Delayed by Power Grid Constraints
NHS Boards Impose Minimum Waits of Up to Two Years for ADHD and Autism Assessments
Police Arrest Far-Right Activist After Migrant Dinghy Slashed in English Channel
Synthetic Opioids Drive Renewed Rise in Scotland’s Drug Deaths
Reported Assaults on Britain’s Railways Rise 20% in a Year
Vistry Cuts Profit Forecast as Losses Weigh on UK Housebuilder
TikTok Drops Appeal and Accepts £12.7 Million UK Data Protection Fine
Russell Group Urges UK Government to Drop Proposed International Student Levy
Legal & General Plans to Cut 1,000 Jobs by Mid-2027
UK Health Bill Would Remove Independent Governors From NHS Foundation Trusts
BMA Raises Patient Safety Concerns Over Advanced Practitioners Filling Doctor Rotas
UK’s Largest AI Supercomputer Delayed by Power Supply Constraints
NHS Orders Security Cameras in Neonatal Units Following Thirlwall Inquiry
Post-Brexit Trade Barriers Cost UK Economy Up to £6.5 Billion a Year, Analysis Says
UK Parliament Launches Inquiry Into Bank of England Monetary Policy Independence
Global Bond Selloff and Higher Oil Prices Narrow UK Budget Options
UK Prime Minister Andy Burnham Addresses UN and Holds First Meeting With Donald Trump
Royal Navy Commandos Complete Maritime Operations Training With US Navy SEALs
Vistry Profit Warning Adds to Concerns Over UK Housebuilding Conditions
UK Commits £343 Million to Major Expansion of Community Mental Health Services
Five Eyes Partners Back UK-Led Campaign Against Global Fraud Networks
UK Businesses Gain Full Access to £13 Trillion CPTPP Trading Bloc
UK Allocates Nearly £10 Billion for Council, Social and Affordable Housing
Chancellor John Healey Unveils Deregulation Drive to Accelerate UK Investment and Growth
Prime Minister Andy Burnham Sets Out Post-Brexit Foreign Policy Vision at United Nations
UK Reassesses Chagos Arrangements as Burnham Seeks New Path on Diego Garcia
Key Trends to Watch
Government’s “Buy British” Procurement Push Targets More Domestic Jobs and Industrial Capacity
Scotland Launches Four-Year Flood Resilience Programme With New Community Funding
Low-Income Renters Face Record Gap Between Housing Support and Private Rents
UK and US Test Torpedo Launch From British Undersea Drone in Defence Technology Milestone
Britain Pushes Artificial Intelligence Security Onto United Nations Security Council Agenda
Treasury Committee Defends Office for Budget Responsibility Independence Amid Fiscal Pressure
×