Foreign ownership and investment

There are no laws or rules restricting foreign ownership and investment in the UK.

Instead, foreign-controlled companies or owners are treated the same as UK-owned businesses and individuals for the purposes of investment. But foreign and British entities looking to invest must comply with competition law, and regulatory approval may be required for foreign investor takeovers of large UK entities.

Equally, investors will need to consider whether any mandatory or voluntary notification might be needed under the National Security and Investment Act 2021. The Act came into force on 4th January 2022 and brought in new requirements for FDI in 17 sectors likely to impact national security. The Act enables the government to scrutinise and intervene in acquisitions made by anyone, including businesses and investors, that could harm the UK’s national security. The government can impose certain conditions on an acquisition, unwind it or if necessary, block it completely, but expects to do the latter rarely.

[See: How the National Security and Investment Act could affect people or acquisitions outside the UK - GOV.UK, andNational Security and Investment Act 2021 - GOV.UK. ]

The UK has limited legislation governing investments into it from other jurisdictions. Consents or approvals are not generally required for the flow of funds into or out of the jurisdiction.

Last year, the government committed to establishing 13 Investment Zones supporting five key sectors around the UK, in which businesses can benefit from tax reliefs, and local enterprise and business support measures.

Real estate

There are no restrictions on foreign ownership or occupation of real estate in the UK. But certain formalities apply when an overseas company applies to register a legal title to a property with HM Land Registry.

The Economic Crime (Transparency and Enforcement) Act 2022 (ECTEA 2022) enables the creation of a new register requiring an overseas entity owning property in the UK to register with Companies House and identify their beneficial owners. From 5 September 2022, to register title to land at the HM Land Registry, an overseas entity must demonstrate that it is registered at Companies House. Non-compliance with these requirements can lead to restrictions on the ability of an overseas entity to make a disposition of the qualifying estate or register the interest in the qualifying estate at the Land Registry. The legislation sets down criminal offences for non-compliance with these requirements.

There are no exchange control restrictions in the UK that would restrict funds flowing in or out of the country. However, it's important to note that while there are no restrictions on the movement of funds, foreign exchange gains and losses may occur and are subject to specific tax rules.