Anti-Money Laundering (AML) Compliance: A Critical Aspect of Property Transaction
Money laundering, the process of disguising the origins of illegally obtained money, poses a significant threat to the global finance system. In context of property transactions, anti-money laundering (AML) regulations have become increasingly important to prevent property from being used as a means of laundering illicit funds.
The Importance of AML Compliance in Property Transactions
Property is an attractive avenue for money laundering due to the high value and relative stability of property investment. Criminals often purchase properties to convert illicit cash into legitimate assets, making it difficult for authorities to trace the origins of the funds. To address this, jurisdictions worldwide have introduced stringent AML regulation requiring property professionals to carry out due diligence on their clients and transaction.
AML compliance is not only a legal requirement but also crucial for upholding the integrity of the property market. Failure to comply with AML regulations can lead to severe penalties, including substantial fines and imprisonment. Furthermore, property firms that neglect these regulations risk harming their reputation and losing the trust of clients and partners.
Legal Obligations Under AML Regulations
Lawyers, estate agents, brokers, and other professionals involved in property transactions are considered “reporting entities” under AML laws. This designation requires them to adhere to several key obligations, including:
- Customer Due Diligence (CDD): Reporting entities are required to carry out comprehensive CDD to verify their client’s identities and understand the nature of their transactions. This involves obtaining and validation identification documents, accessing the client’s risk profile, and establishing the source of funds involved. Enhanced due diligence must be applied for higher-risk clients, such as politically exposed person (PEPs) or those from high-risk jurisdictions.
- Enhanced Due Diligence (EDD): In situation where there is a higher risk of money laundering, Enhanced Due Diligence measures are applied. EDD requires more in depth and continuous monitoring of the customer relationship.
- Ongoing Monitoring: AML checks do not end with the initial CDD. Financial institutions and other obligated entities must continuously monitor transactions and customer behaviour to detect and report suspicious activities.
- Suspicious Activity Reporting (SAR): When a business identifies a transaction or behaviour that raises suspicion, it must file a Suspicious Activity Report (SAR) with the National Crime Agency (NCA). The SAR allows authorities to investigate further and, if necessary, freeze asset or take other actions to prevent the laundering of funds.
AML Checks in the UK are a vital part of the country’s strategy to combat financial crime. Through stringent regulation, comprehensive due diligence processes, and ongoing monitoring, the UK aims to protect its financial system from being exploited by criminals. However, as financial crime evolves, so too must the methods and technologies used to combat it, ensuring that the UK remains a global leader in the fight against money laundering.
If you have any questions about buying a house, investing in the UK and AML investigations, please contact us
This article is provided for general information only. It is not intended to be and cannot be relied upon as legal advice or otherwise. If you would like to discuss any of the matters covered in this article, please contact us using the contact form or email us on reception@cnsolicitors.com
Business Expansion Visa - A secret weapon in the context of economic globalisation
Economic globalisation is an inevitable trend. In the post-pandemic era, the global economy is gradually recovering, and cross-border development has become a pursuit for many companies looking to expand their business footprint.
As one of the world's most important financial centres, London naturally becomes the first choice for many overseas enterprises looking to enter the international market.
To align with this trend, the UK Home Office has introduced the Global Business Mobility (GBM) route, which consists of five types of visas:
- Expansion Worker Visa
- Senior or Specialist Worker Visa
- Graduate Trainee Visa
- Service Supplier Visa
- Secondment Visa
What is the Expansion Worker Visa?
The Expansion Worker Visa allows overseas companies to send one or more senior managers or specialist employees to the UK to establish a branch that has not started trading in UK yet.
Comparing it to the previous Representative of an Overseas Business Visa:
Advantages:
- A company is no longer limited to sending just one representative; multiple employees can now be sent to establish a branch and conduct business in the UK.
Disadvantages:
- This visa is valid for a maximum of 2 years, with each issuance lasting 1 year.
- The time spent on this visa cannot be accumulated towards the 5-year residency required for settlement.
Please note:
Priority service is not available for the application for the Expansion Worker sponsorship license therefore, the decision could take up to six months. Therefore, it is advisable to consult with an immigration specialist in advance to secure the sponsorship license as quickly as possible.
Eligibility Requirements:
The Expansion worker must have worked for the employer outside the UK for at least 12 months, evidenced by 12 months of pay slips. If the applicant's annual salary exceeds £73,900, the work duration requirement is waived, and fewer pay slips can be provided.
The applicant must meet the minimum annual salary requirement of £48,500 or the current salary requirement for the role as listed in the occupational list, whichever is higher.
The applicant must be engaged in an eligible occupation, such as Chief executive, engineering manager, finance manager, sales director, marketing manager, etc. (For a specific list of eligible occupations and codes, refer to the link: Global Business Mobility Eligible Occupations and Codes).
Documentation requirements for Expansion Worker Visa:
Basic information and documentation include:
- Certificate of Sponsorship (CoS): including reference number, employer name, and employer's sponsorship licence number
- Passport and national identity card
- Proof of the applicant's job position and salary, such as employment contract, confirmation letter of employment, payslips
- UK occupation code
- Maintenance funds proof: a bank statement showing at least £1,270 in savings for 28 consecutive days
- Tuberculosis test report: required for some countries (detailed list available at TB Test for UK Visa) https://www.gov.uk/tb-test-visa/countries-where-you-need-a-tb-test-to-enter-the-uk）
Please note:
- If the applicant has been living in the UK for 12 months, maintenance funds proof is not required.
- The visa application must be submitted within 3 months of receiving the CoS.
- All documentation must be in English or translated by a certified translation agency.
- The immigration office may request additional documents, depending on the applicant's background.
The initial Expansion Worker Visa allows the applicant to stay in the UK for up to 12 months. Upon expiration, it can be extended once, however, each applicant is limited to one extension. This means the maximum stay on this visa is 2 years.
After the Expansion Worker Visa expires, it is possible for the applicant to switch to other long-term visas or other visas under the Global Business Mobility route, such as the Senior or Specialist Worker Visa or the Skilled Worker Visa upon meeting the requirements.
Please note:
If you have held an ICT visa and visas under the Global Business Mobility route, the total time on these visas cannot exceed 5 years within any 6-year period.
The application fee for the initial and extension is £298. The processing time for application outside the UK is 3 weeks, and for applications within the UK, it is 8 weeks. Please refer to the government website for the most up to date information.
Applicants can also apply for dependent visas for their partner and children.
Summary
Advantages:
- Allows overseas companies to send multiple employees simultaneously.
- No language requirement.
- Lower financial maintenance requirements.
- Low visa application fee.
Disadvantages:
- Does not lead to settlement in the UK
- Short visa duration
- High annual salary requirement
- High requirements for the parent company
For Companies: The Expansion Worker Visa allows the parent company to send multiple senior employees to the UK to establish a branch, making the business expansion process more efficient compared to the Representative of an Overseas Business Visa, which only allowed one representative. This is ideal for overseas companies looking to expand their business in the UK. It is also a type of guarantee when using a mature parent company to address multiple employees' work and living needs in the UK simultaneously.
For Applicants: The preparation period and costs for applying for this visa are extensive, requiring a strong background from the parent company to meet the sponsorship requirements. To stay in the UK and obtain permanent residency, applicants need to switch to different visa types, increasing the time cost for applying for permanent residency.
This article is provided for general information only. It is not intended to be and cannot be relied upon as legal advice or otherwise. If you would like to discuss any of the matters covered in this article, please contact us using the contact form or email us on reception@cnsolicitors.com[/vc_column_text][/vc_column][/vc_row]
TA6 Property information Form update
The TA6 form is a crucial document used in the UK property conveyancing process. It is part of a Law Society’s suite of forms and is officially known as the “Property Information Form.” The TA6 form is completed by the seller and provides detailed information about the property to prospective buyers. This information helps buyer make informed decisions and addresses any potential issues before the sale is completed.
Currently the TA6 covers 14 separate subjects with question to be answered by the seller. These are:
- Boundaries
- Disputes and complaints
- Notices and Proposals
- Alterations, planning and building control
- Guarantees and warranties
- Insurance
- Environmental matters
- Rights and informal arrangements
- Parking
- Other charges
- Occupiers
- Services
- Connection to utilities and services
- Transaction information
While currently completing a TA6 form is not mandatory. Omission or delay in providing the same may delay the sale. As you’re trying to sell your home, you’ll not doubt want to get a move on, so filling in the form as thoroughly as possible will get your sale off to a good start.
The form includes instruction to seller that they should:
- Complete the form to the best of your knowledge
- State if you don’t know the answer to any question
- Be accurate, if you give incorrect or incomplete information to the buyer, the buyer may make a claim for compensation from you or refuse to complete the purchase.
- Inform your solicitor immediately if you become aware of any information which would alter any replies you have given
- Give your solicitor any letters, agreement or other paper which help answer the question
In March 2024, the Law Society published the TA6 (Fifth Edition) Property Information Form. Initially, it was set to be mandatory for all Conveyancing Quality Scheme (CQS) firms from June 25, 2024.
The form has been updated to include information that the National Trading Standards Estate and Letting Agency Team (NTSELAT) says should be disclosed on a property listing. The idea behind the new form is that a client should contact their solicitor and complete this form earlier so that more information can be used for marketing the property. This should give buyers an increased knowledge of the property and reduce the likelihood of the transaction falling through at a later stage when extra information is revealed.
The Law Society President Nick Emmerson says: “Earlier contact between sellers and their solicitors may provide an opportunity to address any issues that could cause delays in the sale process at a later date. We hope that the TA6 will help facilitate the flow of information from marketing a property by estate agents through to the legal process. The aim is that having better informed buyer could help reduce both the time process takes and the number of sales that fall through.
The new form has been split into two parts:
Part 1 deals with material information which your estate agent will require, for instance, Council Tax Band, Physical Characteristics of the property or Building Safety while Part 2 deals with general information and should be completed. These include queries regarding Boundaries, Disputes and complaints or Transaction Information, etc.
While the intention behind the updates was to enhance transparency and efficiency in property transactions, several concerns have been raised regarding the practical implications and effectiveness of the new form. Here are some of the criticisms:
- Complexity and Length – Many argue that the new TA6 form is overly complex and lengthy. The increase level of details and additional questions may overwhelm both buyer and seller, leading to confusion and potential errors in completion. This could result in longer transaction times, as parties may require more time to understand and complete the form accurately.
- Increased Burden on Seller—The new TA6 form places a greater burden on sellers to provide detailed information about the property. This includes additional disclosures related to environmental factors, building work, and insurance claims. The increased burden on the sellers to provide detailed information and potentially obtain additional assessments or reports could increase the overall cost of selling a property.
- Uncertainty about Effectiveness—Some question the effectiveness of the new TA6 form in achieving its intended goals of improving transparency and efficiency in property transactions. There is uncertainty about whether the increased level of detail and additional disclosures will genuinely benefit buyers and sellers or simply add complexity to the process without significantly improving outcomes.
However, the Society of Licensed Conveyancers (SLC) has expressed its disappointment that the Law Society has updated the TA6 forms without their consultation. Simon Law, the Society Chairperson, says: “We are disappointed to note that the forms have been amended without consultation with either the SLC or the Conveyancing Task Force. Adding material information to these forms has drastically increased the size of the forms and information required.”
Following the backlash, President Nick Emmerson wrote an article in The Law Society Gazette addressing the concern, saying: “We have heard your feedback and want to explain in more detail the reasons behind the changes to the form, which was developed by a working group conveyancer with a wealth of experience of working on the transaction form. Our aim with the new TA6 is to help solicitors and consumers implement the NTSELAT material information guidance as seamlessly as possible.”
However, The Law Society has delayed the mandatory use of the updated TA6 form from June 2024 to January 2025. Ian Jeffrey, the Chief Executive Officer of the Law Society of England and Wales, explained, “We recognise that we have not yet persuaded enough of our colleagues on these particular changes, so we need to do more to communicate with the profession about them.” Until 15th January 2025, firms can use either the 4th or 5th edition of the TA6 form.
In conclusion, the updated TA6 Property Information Form, now in its fifth edition, introduces significant changes to enhance transparency and efficiency in the property conveyancing process. Mandated for use by Conveyancing Quality Scheme firms from June 2024, the revised form includes comprehensive disclosures recommended by the National Trading Standards Estate and Letting Agency Team. By requiring sellers to provide detailed information earlier in the transaction process, the updated TA6 aims to inform buyers more thoroughly and reduce the risk of sales falling through.
The change has not been without controversy. Criticisms focus on the increased complexity and length of the form, the additional burden placed on the seller, and doubt about the form’s overall effectiveness in achieving its goals. The Society of Licensed Conveyancers and many professionals in the field have expressed concerns, highlighting the need to balance thorough disclosure and practical usability. Hopefully, the delay will allow for these issues to be addressed and for better communication with the profession.
As part of our commitment to maintaining the highest standards under the Conveyancing Quality Scheme, Chan Neill Solicitors LLP will begin using the new TA6 form from 15th January 2025. Please do not hesitate to contact us for guidance or support. We will provide clear instructions and examples to help you complete the new form accurately. Our team will be available to answer any questions about specific sections or the information required.
This article is provided for general information only. It is not intended to be and cannot be relied upon as legal advice or otherwise. If you would like to discuss any of the matters covered in this article, please contact us using the contact form or email us on reception@cnsolicitors.com
How will the arrival of the UK's new ruling party affect non-UK domiciliaries?
According to data from HMRC, the number of people applying for non-domiciled status in the UK has increased since the COVID-19 pandemic. In the 2022-23 fiscal year, approximately 74,000 people applied for non-domiciled status, up from 68,900 in the 2021-22 fiscal year.
In their inaugural speech, the new Labour government emphasised one of the main issues the UK is currently facing: a public sector funding shortage. To address this issue, Labour has pledged to abolish the UK’s non-domiciled tax status to raise more funds for the National Health Service (NHS) and other public service sectors.
Why would abolishing non-domiciled tax status help the government raise more funds? Today, Chan Neill Solicitors will explore the concept of non-domiciled status.
What is Non-Domiciled Status (Non-Dom)?
Non-domiciled status refers to the tax status of UK residents whose permanent residence or domicile is outside the UK.
A person’s tax status is not directly determined by their nationality or residency but can be influenced by these factors. Individuals with non-domiciled status only need to pay UK income tax on their UK-sourced income. They do not need to pay UK tax on their income from other parts of the world unless they deposit it into a UK bank account.
For UK individuals with significant overseas assets and who have moved abroad, having non-domiciled status can legally save them a considerable amount in taxes.
How Will the Non-Domiciled Rules Change?
In March 2024, then-Chancellor Jeremy Hunt of the Conservative Party announced plans to abolish the non-domiciled tax regime gradually. This means that UK citizens/residents who move abroad must also pay UK income tax on their overseas income.
Hunt plans that, from April 2025, individuals who move to the UK will not have to pay tax on their overseas income for the first four years, nor will they need to pay tax on distributions from non-resident trusts. These funds can be freely brought into the UK. However, during these four years, individuals will lose the right to personal and annual tax-free allowances for corporate income. After four years, these individuals must pay tax on their global income and gains according to normal UK resident tax rules.
Current non-domiciled individuals will have a two-year transition period. Until April 2027, they will receive a tax discount on overseas income, with only 50% of overseas income being taxed. From April 2027 onwards, the UK will tax all their overseas income.
After taking office, the Labour government revealed plans to uphold the April 2025 abolition of the non-domiciled regime but also announced intentions to strengthen these planned reforms.
Labour stated that in the first year of implementing the new rules, the 50% discount would be eliminated, and foreign assets held in trusts would be brought into the UK inheritance tax framework.
New Chancellor Rachel Reeves stated that Labour’s reforms could raise £2.6 billion for the government during the 2028/29 fiscal year.
How to Become a Non-UK Domiciled Individual?
There are two main conditions and methods for obtaining non-domiciled status:
- Birth Origin: You were born in a country outside the UK, or your father is from abroad.
- Domicile of Choice: You are at least 16 years old and choose to leave the UK and permanently reside in another country.
What Are the Current Rules for Non-UK Domiciled Status?
If you are a non-domiciled individual and choose not to pay UK tax on your overseas income, you must pay:
- £30,000 if you have lived in the UK for at least 7 out of the last nine tax years.
- £60,000 if you have lived in the UK for at least 12 out of the previous 14 tax years.
In 2017, the non-domiciled rules changed, meaning you can no longer apply for this status if you have lived in the UK for 15 out of the last 20 years or if you meet all the following conditions:
- You were born in the UK.
- Your domicile of origin is in the UK (i.e., your father is from the UK).
- You have lived in the UK for at least one year since 2017.
However, if your annual foreign income is less than £2,000 and you do not bring this money into the UK, you do not need to pay any tax on your overseas income.
If you are concerned about the impact of these reforms on your assets, we recommend consulting with professionals to strategically plan your assets and minimise the reform’s impact on you. Our professional legal team can help you plan your assets from various perspectives, including business, real estate, and immigration.
This article is provided for general information only. It is not intended to be and cannot be relied upon as legal advice or otherwise. If you would like to discuss any of the matters covered in this article, please contact us using the contact form or email us on reception@cnsolicitors.com
Understanding the Building Safety Act 2022: Why Do We Need It in Conveyancing Practice?
The Building Safety Act 2022 represents a landmark legislative endeavour aimed at addressing the systemic failures and deficiencies exposed by incidents such as the Grenfell Tower tragedy. The fundamental purpose of the Act is to provide a framework for maintaining the integrity and safety of high-risk residential buildings and thus ensuring public confidence. The purpose of this article is to investigate the Building Safety Act 2022 and seek an explanation as to why its implementation in conveyancing practice is crucial for protecting stakeholder interests.
What are the new roles created by the Act?
Chief among these roles is the establishment of the Building Safety Regulator (BSR), tasked with implementing standards, conducting inspections, and enforcing adherence to regulatory standards, thereby representing a shift in the regulatory landscape. The Act also introduces the designation of the 'Accountable Person,' who is responsible for ensuring that high-risk buildings are safe and maintaining effective, productive communication with residents. These new roles represent a fundamental shift in the regulatory landscape, emphasising the importance of proactive risk management and stakeholder engagement.
The Building Safety Regulator (BSR)
BSR presents a thorough strategic framework, the timeframe of which extends from the implementation of the Building Safety Act 2022 to April 2026 and beyond. The strategic framework presents the following main objectives:
- Implementing strict safety measures for high-risk buildings, covering the aspects of design, construction and ongoing maintenance.
- Undertaking thorough audits and inspections to identify safety hazards and enforce adherence to regulatory standards.
- Cultivating effective communication with stakeholders, such as industry professionals, residents and owners, to facilitate accountability and transparency.
- Offering building owners and managers support and in enacting measures aimed at proactive risk management and adequately amending safety concerns.
- Enabling residents to access vital information about the safety of their residence and participate in the safety management process.
- Responding to emerging challenges and lessons learnt from previous incidents by continuously assessing and amending regulatory frameworks.
- Cooperating with government agencies, regulatory bodies and industry stakeholders to promote best practices and innovations in building safety.
The principles in the strategic framework aim to instil public confidence in high-risk building safety and reduce the likelihood of catastrophic incidents. By fostering proactive collaboration and engagement, the BSR seeks to ensure the long-term well-being of building residents and their communities. The framework also highlights the importance of informing clients about all potential liabilities and risks associated with their investments.
Definition of a High-Risk Building?
A high-risk building is defined based on several factors, such as construction materials, occupancy, and height. High-risk residential buildings that are found to exceed the height threshold are categorised as high-risk given the potential for structural vulnerabilities and the spread of fire. In addition, buildings featuring historical deficiencies, complex facades, or mixed-use occupancies may also be categorised as such.
Accountable Person
The role of Accountable Person is responsible for ensuring that high-risk buildings are safe and maintaining effective, productive communication with residents. The implementation of this role presents a duty of care to property owners and managers, enforcing mandatory proactive measures for identifying and amending all safety hazards. From the perspective of conveyancing, this requires careful scrutiny of the role of Accountable Person in order to alleviate the risk of accidentally transacting in properties beleaguered by issues related to safety.
Conveyancing practitioners play a crucial role in facilitating transparency and dialogue between sellers, buyers, and stakeholders, ensuring everyone is aware of their obligations. Promoting open communication enables practitioners to enhance risk mitigation and accountability within the real estate sector.
The Building Safety Act 2022 enhances residents' rights and protections, granting them access to vital safety information about their homes. This fosters engagement and transparency, empowering residents to actively participate in safeguarding their communities and promoting collective responsibility and vigilance. For conveyancing practitioners, it underscores the importance of helping clients make informed decisions and understand their rights as homeowners.
In summary, the Building Safety Act 2022 is pivotal in ensuring safety, transparency, and accountability in the built environment, transforming real estate law. Its implementation in conveyancing is both a legal requirement and a moral imperative, demanding proactive client advocacy and risk management. Conveyancing practitioners who fully embrace the Act's principles can safeguard their clients' interests, promote safety and integrity in built environments, and uphold high standards of ethical conduct and professionalism.
This article is provided for general information only. It is not intended to be and cannot be relied upon as legal advice or otherwise. If you would like to discuss any of the matters covered in this article, please contact us using the contact form or email us on reception@cnsolicitors.com
Registration as British for Irish citizens
The political relationship between the United Kingdom and Ireland dates back to the 16th century. Being the closest geographical neighbour, Ireland is the most important UK’s economic, trade, investment and tourism partner. Both countries form a part of the Common Travel Area which allows British and Irish citizens to move freely and reside in either country without restrictions, including the right to study or work.
In light of the UK’s exit from the European Union in 2020, the rights of Irish citizens in the UK remained protected. It was, however, possible for Irish citizens, as for any EU nationals, to apply for a status under the EU Settlement Scheme and even apply after the 30th of June 2021 deadline if there are reasonable grounds for making a late application.
The immigration relationship between Ireland and the UK, however, has not always been tranquil. Recently, there have been tensions over migration in the wake of the UK-Rwanda Agreement as there has been an influx of migrants arriving in Ireland from Northern Ireland, which forms a part of the United Kingdom.
For those Irish citizens, who wish to obtain British nationality, there have been several routes to do so. The most common route is naturalisation. Other than this, Irish citizens can become British by birth, descent or double descent.
This year, one more route has been introduced with the passing of the British Nationality (Irish Citizens) Act 2024. The Act makes provisions for Irish citizens to become British by registration having lived in the UK for 5 years and without sitting a citizenship (Life in the UK) and/or English language test, as required under the naturalisation process. The two-section Act sets out the absences limit that has to be met along with the non-previous breaching of immigration laws rule. In special circumstances, the Secretary of State may treat these requirements as being satisfied where they are not.
The relevant provisions set out in the Illegal Migration Act 2023 are preserved in this new Act, which restricts certain persons from applying based on the initial irregular arrival to the UK. Notably, however, there are no restrictions on the time that an applicant must hold Irish citizenship before submitting the registration application. As such, an applicant commencing residence in the UK as a non-Irish citizen and later acquiring Irish citizenship can be eligible to apply as long as the overall time spent in the UK before the date of application is at least 5 years.
The Act makes a welcome addition to the current legislation framework. The demand for British citizenship from Irish nationals is, however, yet to be seen.
This article is provided for general information only. It is not intended to be and cannot be relied upon as legal advice or otherwise. If you would like to discuss any of the matters covered in this article, please contact us using the contact form or email us on reception@cnsolicitors.com
The Three-stages of Security for Costs
What is Security for Costs
Security for costs is an application that a party (Defendant during the proceedings) can make where they believe the other party (the Claimant) does not have the financial means to pay any legal costs awarded to the Defendant should the Claimant’s claim be unsuccessful at trial.
Who can apply for Security for Costs
Usually, an application for security for costs is made by a Defendant, however there are some circumstances where an application can be made by the Claimant (i.e. if the Defendant has made a counterclaim).
The 3-stage process that the Court consider
When the Court considers a security for costs application, there are three stages which are as follows:
- Grounds for Security for Costs
- Whether the Court should exercise its discretion
- Quantum
Grounds for Security for Costs
There are a number of grounds that the Applicant (the person making the application) must satisfy in their application (but not limited to) such as:
- Whether the Respondent resides outside of the UK (or is not a resident in a State bound by the 2005 Hague Convention)
- The Respondent’s address is incorrectly stated on the claim form
- The Respondent’s address is omitted from the claim form
- The Respondent has changed their address during the proceedings with the intention to avoid the cost consequences of the court proceedings.
What the Court’s take in to account
Applications for security for costs are usually dealt with at a hearing. The Court will consider all the relevant factors but not limited to the following points to decide whether the Court should exercise its discretion:
- Whether the grounds for Security for Costs have been satisfied
- How long the Applicant took to make the application
- The financial position of the Respondent
- The implications on the Respondent if an order for Security for Costs is made
- All circumstances of the case
- Whether the Respondent has After The Event insurance
Quantum
Once the court has decided that the grounds have been satisfied and that they should exercise their discretion to grant an order for security, the Court will then consider the amount of security and what form the security should be given.
Usually, the Applicant would request 100% of all their anticipated legal fees set out in their application (cost budget) however the court would review the Applicant’s anticipated costs and exercise their powers to assess the Applicants costs (like detailed assessment).
Conclusion
A party can make an application for security for costs at any stage during the court proceedings however, the earlier the application is made the better.
An Order for Security for costs is discretionary and the court would take in to account the time it has taken for the party to make such application which of course can have a detrimental effect on the court’s decision.
This article is provided for general information only. It is not intended to be and cannot be relied upon as legal advice or otherwise. If you would like to discuss any of the matters covered in this article, please contact us using the contact form or email us on reception@cnsolicitors.com
Navigating the Registration Process for Overseas Entities in the UK: Ensuring Compliance and Unlocking Opportunities
The UK continues to attract businesses from all corners of the globe. With its business-friendly infrastructure, environment and history, the UK remains a top destination for international entities seeking to establish a presence. However, for overseas companies looking to operate within the UK, navigating the regulatory landscape can be a daunting task.
One crucial step in this process is the registration of overseas entities, a procedure designed to ensure transparency, accountability, and compliance with UK laws. The Register of Overseas Entities (RoE) was established by the Economic Crime (Transparency and Enforcement) Act 2022 (ECTEA). It is regarded as an important step in dealing with global economic crime and furthering legitimacy within the UK property market.
The registration of overseas entities in the UK falls under the control of the Companies House, the government agency responsible for maintaining the official register of companies in the UK. Overseas entities seeking to establish a presence in the UK have historically had to register as an 'overseas company' if they plan to carry out business activities within the jurisdiction. On 26 October 2023, the ECTEA received Royal Assent, meaning that overseas entities which own UK property or land must declare information regarding their beneficial owners and/or managing officers.
To apply to register an overseas entity and its beneficial owners, the entity will require a Companies House Account. Detailed information about the overseas entity is required and its beneficial owners and/or managing officers will need to supply information about any relevant trusts, alongside the registration fee. A UK regulated agent based in the UK, often a law firm such as ourselves, must also confirm that they have carried out the requisite verification checks on the information regarding the beneficial owners and/or managing officers. It is therefore quicker and easier for the UK regulated agent to carry out the registration process themselves.
While the registration process may seem complex at first glance, it offers several benefits for overseas entities seeking to establish a foothold in the UK property market.
Legal Recognition: Registration as an overseas company provides legal recognition and legitimacy, enhancing the entity's credibility and reputation in the UK market.
Access to Markets and Opportunities: Registered overseas entities gain access to the vast UK market and can capitalise on business opportunities, partnerships, and investments within the country.
Enhanced Transparency and Compliance: By registering with Companies House, overseas entities demonstrate their commitment to transparency and compliance with UK laws and regulations, fostering trust among stakeholders and potential partners. If Companies have made an error in applications or have been delayed in registering, a concerted effort to communicate reasoning with Companies House should still be appreciated as a commitment to the transparency and compliance the ECTEA intended.
Protection of Rights and Interests: Registration affords overseas entities legal protections and safeguards their property within the UK, including the ability to sell, buy and lease the properties as well as resolve disputes surrounding the properties through the British legal system.
Once the entity has registered with Companies House, it will be issued with an overseas entity ID number (OEID). When the entity then enters property transactions, this number will be supplied to the Land Registry. The entity will then be able to buy, sell and transfer property within the UK whilst satisfying the regulatory requirements.
In an increasingly interconnected world, the registration of overseas entities in the UK serves as a gateway for foreign companies to new opportunities. While the process may involve complexities and regulatory requirements, it offers numerous benefits for businesses looking to expand their operations into the UK and its property market.
This article is provided for general information only. It is not intended to be and cannot be relied upon as legal advice or otherwise. If you would like to discuss any of the matters covered in this article, please contact us using the contact form or email us on reception@cnsolicitors.com
Relationship breakdown and separation: Impact on a UK visa
Most of the visa pathways under the UK Immigration Rules allow dependent partners, which include spouses as well as unmarried partners to join their British Citizens, settled persons or leading applicants under the various visa routes in order for them to continue enjoying family and private life in the UK. It is, however, unavoidable, that every relationship goes through a fair share of ups and downs and in some cases, results in separation and divorce.
As far as the Home Office is concerned, every separation or divorce from a UK-based partner must be reported. This is because the visa of dependent partners depends on the relationship in question, making their stay in the UK limited to the leading applicant’s visa or visa validity on family routes.
Different rules apply to family members of the BN(O) Status Holders, where the subsequent applications for leave to remain or settlement do not require proof of a subsisting relationship. Similarly, in EUSS cases, each individual with a visa granted under the EUSS Scheme has leave in their own right. As such, the test of proportionality must be applied by the Home Office before considering visa cancellation.
The reporting can be made by either the visa status holder or the sponsoring partner. There is an electronic application form that can be found on the GOV.UK website is specially designed for this purpose.
The ultimate question is what happens to a valid UK visa after the necessary reporting has been made to the Home Office?
According to the Home Office’s internal procedure, once the notification of the relationship breakdown has been received, the case will be considered for cancellation and the visa will be curtailed to 60 days unless there are exceptional reasons to cancel permission with immediate effect or the individual has less than 60 days permission remaining. During the curtailment period, an alternative visa status can be sought via other permittable UK visa routes.
If there is a reliable indication that the UK visa holder has been a victim of abuse or domestic abuse at the hands of their UK spouse or partner, the curtailment will not be persuaded. This, however, excludes cases where the lead applicant holds a temporary UK visa (for example under the Point-Based System).
It is a common practice that the decision to cancel a UK visa is served via email but can also be sent by post to the last known address where the email address is not provided. It is advisable to regularly check a spam folder in the email account as the Home Office communication can land there.
In the most recent judgment on this matter [2024] EWHC 1097 (Admin), the claimant challenged the Home Office visa refusal on two grounds, one of them being the statutory presumption of service. The judge accepted that the curtailment decision served via email was capable of being rebutted, however, without any substantial evidence it was impossible to ascertain. The onus is on a UK visa holder to regularise their immigration status as soon as possible following the relationship breakdown, even, if they have been unaware of the reporting being made to the Home Office by the other party to the relationship.
This article is provided for general information only. It is not intended to be and cannot be relied upon as legal advice or otherwise. If you would like to discuss any of the matters covered in this article, please contact us using the contact form or email us on reception@cnsolicitors.com
Navigating Business Restructuring: Strategies for Success in Turbulent Times
Introduction
Due to the interconnected global economy, markets are experiencing significant disruptions causing turmoil and challenges for businesses and their stakeholders. Successfully guiding clients through complex restructuring and insolvency processes across borders demands not only experience but also a global presence, expertise in advising diverse stakeholders, and seamless coordination across legal domains.
Understanding Business Restructuring
Business restructuring is an important process that businesses go through to deal with tough economic times, adapt to changes in their industry, or fix internal problems. Making it work usually means making smart decisions, working together with everyone involved, and being ready to change how the business operates. This article looks at real examples of companies that have successfully restructured their finances, showing what they did and how it helped their overall business.
Legal Considerations in Business Restructuring
Legal considerations play a vital role in business restructuring. It is integral to business restructuring to encompass regulatory requirements and contractual obligations. Understanding the relevant regulatory framework is essential to ensure compliance with corporate governance, securities laws, and industry-specific regulations. Managing existing contracts may necessitate renegotiation or termination, whilst adherence to employment laws is critical, especially concerning workforce changes. Moreover, considerations such as intellectual property, taxes and environmental regulations must be carefully evaluated to avoid legal complications. A comprehensive grasp of the legal landscape is vital for effective restructuring, risk mitigation and regulatory compliance.
Steps in Business Restructuring
Preparing for restructuring is similar to laying the groundwork for a major renovation project. It involves a comprehensive examination of the company's financial health and operational efficiency, identifying areas that need improvement and devising a detailed plan to address these issues. This plan should outline specific objectives, strategies and timelines, serving as a roadmap for the restructuring process. Seeking input from financial advisors and legal experts can provide valuable insights and help anticipate potential challenges that may arise.
Negotiating and documenting the restructuring plan requires collaboration with various stakeholders, including creditors, suppliers and employees. This entails renegotiating contracts, restructuring debt agreements and formalising legal documents such as restructuring plans and employment contracts.
Throughout this process, clear communication, transparency, and attention to detail are essential to ensure everyone is aligned and the restructuring strategy is executed effectively. By carefully laying the groundwork and meticulously planning each step, companies can navigate the complexities of restructuring with confidence and achieve their desired outcomes while safeguarding the interests of all involved parties.
Conclusion
Navigating the complexities of business restructuring requires a comprehensive understanding of the interconnected global economy and the legal landscape. With expertise in debt finance, restructuring, and litigation, our team is well-equipped to guide clients through the intricacies of restructuring, safeguarding their interests and achieving long-term success.