London Daily

Focus on the big picture.
Sunday, Sep 06, 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
OpenAI Unveils GPT-6 and Says: "We May Already Have Reached AGI"
Congressman Accused Andrew of Sex Crimes in the United States
Donald Trump: "I'm Glad Harry and Meghan Left the United States"
Spicy Food Is Linked to Lower Death Risk — but It Is Not a Miracle Cure
AfD Enters Saxony-Anhalt Election at 41% in Historic Test for German Politics
Gen Z Turns to Investing as America's First-Home Dream Moves Further Out of Reach
Thousands Join London March Calling for Tighter Abortion Restrictions
Institute of Directors Says Tax and Regulatory Uncertainty Still Weighs on UK Investment
Bank of England Faces Rate Dilemma as Weak Growth and Persistent Inflation Raise Stagflation Risks
Masked Anti-Immigration Protesters Block Roads to Port of Dover
Prime Minister Andy Burnham Sets Out Devolution and Re-Industrialisation Agenda
British Chambers of Commerce Forecasts UK Growth of Just 1% Through 2027
UK Government Advances Bill to Tighten Rules on Overseas Political Donations
Nigel Farage Faces Scrutiny Over Alleged Reform UK Donation-Law Evasion
Thousands Join Anti-Abortion March Through Central London
UK Beekeepers Call for Nationwide Tracking as Asian Hornet Sightings Increase
England Sees Sharp Rise in Property Subsidence Claims After Record Summer Heat
House of Lords Advances Financial Services Reform Bill
House of Lords Begins Detailed Scrutiny of Railways Bill and Great British Railways Plan
UK Treasury Cuts Green Book Discount Rate to Support More Regional Infrastructure Projects
Reform UK Suspends Two Senior Aides After Undercover Report on Foreign Donation Rules
UK Chancellor Warns Autumn Budget Will Require Tough Choices as Energy Shock Squeezes Public Finances
UK Parliament Raises Concerns Over Funding Structure of £400 Million Tropical Forest Initiative
Andy Burnham Launches Number 10 North as Part of UK Devolution Push
UK Reaffirms Falkland Islands Sovereignty Amid Renewed Regional Pressure
Andy Burnham to Abstain From Assisted Dying Vote as Ministers Are Told to Remain Neutral
Kemi Badenoch Sacks Shadow Chancellor Mel Stride in Conservative Economic Strategy Shake-Up
UK Government Drops Early Prisoner Release Plan in Favor of Deportations and Wider Prison Reform
UK Farmers Warn Drought-Hit Harvests Could Push Grocery Prices Higher
UK Economy Faces Persistent Stagflation Risks Ahead of October Budget
Masked Protesters Block Port of Dover Roads, Disrupting Cross-Channel Traffic
Reform UK Suspends Senior Officials After Undercover Investigation Into Foreign Donation Plans
UK Urges Households to Keep Emergency Supplies Amid Severe El Niño Warning
Prime Minister Andy Burnham Sets Out Regional Industry and Prison Reform Agenda
Siemens Energy Wins Rolls-Royce Small Modular Reactor Manufacturing Contract
UK Mortgage Costs Rise as Gilt Yields and Swap Rates Climb
Bank of England’s Huw Pill Calls for Prompt Rate Rise as Inflation Risks Persist
National Audit Office Warns UK Is Unprepared for Major Food Supply Disruptions
British Army Suspends Some Training Exercises as Budget Pressures Intensify
HMS Queen Elizabeth Deploys as NATO Allied Response Force Command Ship
Reform UK Suspends Two Senior Officials Over Alleged Foreign Donation Scheme
UK Reasserts Falkland Islands Sovereignty After Argentina Threatens Sanctions
Scottish Tech Company PureLifi Enters Administration With More Than 40 Job Losses
Scottish Government Names Alyn Smith Innovation and Education Minister
Green Party Co-Leader Zack Polanski to Contest By-Election for Keir Starmer’s Former Seat
Palestine Action Activists Appeal Terrorism-Related Prison Sentences
PwC Report Highlights Persistent Regional Spending-Power Divide Across Britain
UK Names Hundreds of Employers for Minimum Wage Violations
UK Commits £400 Million to International Tropical Forest Fund
UK Extends £2 Bus Fare Cap Across England Through 2027
×