Fiscal Policy and Economic Backdrop
Autumn 2022

The market crisis triggered by the September mini-budget seems to have passed, with Sterling more stable, although 10-year gilt yields somewhat higher than what the trends might suggest. This market calm remains against a backdrop of uncertainty rooted in the Ukraine War and energy price risk, and political uncertainty in the UK and recovery from the Pandemic.

The most recent monthly estimates are that UK GDP fell 0.3% in August, with the trend remaining slightly below the pre-Pandemic levels. Inflation remains persistently above the Banks of England’s 2% target, but at the time of writing the Bank’s deputy governor stated that interest rates may not rise as far as the market is expecting.

Fiscal

The new Register of Overseas Entities came into force on 1 August 2022. Held by Companies House, it requires overseas entities that own land or property in the UK to declare their beneficial owners and/or managing officers, with severe sanctions for those who do not comply, including restrictions on buying, selling, transferring, leasing or charging their land or property in the UK.

Entities which bought property after 1 January 1999 (England and Wales) or 14 December 2014 (Scotland) or selling property after 28 February 2022 are covered. To be registered overseas entities will need an approved UK-regulated agent, which must provide verification of all beneficial owners.