London Daily

Focus on the big picture.
Monday, Oct 05, 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
BT Accused of Pressuring Vulnerable Customers During Digital Landline Shift
British Carmakers Warn of Growing Pressure From EU-China Tariff Dispute
Green Party of England and Wales Adopts Motion Defining Zionism as Racism
Medical Charity Threatens NHS Legal Action Over Two-Year Autism and ADHD Assessment Waits
British Transport Police Report Record Rise in Violence on Railways
Glasgow Council Workers Face Pay Cuts Under Fire-and-Rehire Plan
British Medical Groups Press Prime Minister Andy Burnham to Cancel £330 Million Palantir NHS Contract
UK Faces Record Bluetongue Outbreak Across Livestock Farms
UK Schools Report Thousands of Child-on-Child Sexual Offences
High Court Overturns Ban Blocking Gaza Families From Reuniting With Relatives in UK
G7 Authorizes Emergency Fuel Release as UK Diesel Prices Hit £2 a Litre
France and Italy Draw 1-1 in Nations League Match
Pope Leo XIV and Prince Albert II of Monaco Meet in Metz
SNCF Expands Low-Cost Ouigo High-Speed Service Between Lyon and Bordeaux
Paris Expands Dedicated Cargo Bike Routes for Urban Deliveries
French Film Industry Pushes for Tighter Streaming Investment Rules
Marseille Court Hands Down Prison Terms in Public Procurement Corruption Case
LVMH and Kering Rely on US Demand as Chinese Luxury Spending Slows
Toulouse Aerospace Sector Launches €80 Million Modernization Fund
Javier Milei Courts French Investment in LNG and Lithium
Mistral AI Launches Sovereign Model for European Public Services
French Competition Authority Fines Retailers €40 Million Over Misleading Promotions
France Records Exceptional Electricity Exports as Nuclear Output Recovers
Dassault Aviation Expands Rafale Assembly Capacity at Mérignac
Sanofi Invests €1 Billion in New Biologics Production Hub Near Lyon
France Protests Germany’s Extension of Border Controls Into 2027
French Public-Sector and Transport Unions Threaten National Strike
France Deploys Riot Police After Violence in Lyon Suburbs
French Anti-Terrorism Prosecutors Investigate Radicalized Flydubai Co-Pilot
France’s Defense Budget Surpasses NATO’s 2% of GDP Target
French Government Faces No-Confidence Threat Over Budget
France and G7 Release 100 Million Barrels From Strategic Oil Reserves
France Convenes Emergency Defense Council Over Threats to Commercial Shipping
France and Germany Coordinate Military Response After Russian Strikes on Kyiv Infrastructure
UK Police Release Six Iranian Nationals on Bail After RAF Fairford Security Alert
UK Business Confidence Falls as Energy Costs and Tax Uncertainty Rise
Cornwall Insight Warns UK Energy Bills Could Rise 16% in January
UK Introduces Zero VAT on Household Electricity Bills
UK 30-Year Gilt Yield Hits 6% as Bond Market Pressures Intensify
UK Introduces Stricter Subcontractor Checks and Expanded Trade Union Access
Green Party Proposes Three-Year Emergency Freeze on Private Rent Increases
UK Treasury Committee Seeks Tax Clarification Over Manchester City Investigation
Royal Marines Deploy to Faroe Islands for Northern European Security Exercise
UK Business Confidence Weakens as High Costs Delay Investment
UK GDP Growth Revised Up to 0.5% in Second Quarter
Bank of England Warns of Financial Stability Risks From Autonomous AI
UK Expands Early Prisoner Release Scheme to Ease Overcrowding
UK Records Worst Bluetongue Outbreak on Record Across Livestock Farms
UK Government Faces Shrinking Fiscal Headroom Ahead of October 28 Budget
UK 30-Year Gilt Yield Reaches 6% as Energy Shock Drives Borrowing Costs Higher
×