Part 1: Registration of Overseas Entities Schedule 5: Land ownership and transactions: Northern Ireland Making dispositions that cannot be registered
Paragraph 5 of the new Schedule 8A provides that an overseas entity must not make a registrable disposition of a qualifying estate if the registration of the disposition is (i) prohibited by an inhibition entered under paragraph 3, or (ii) prevented by paragraph 4. Should an overseas entity make such a disposition (i.e. one that cannot be registered) it commits an offence, and an offence is also committed by every officer of the entity who is in default.
	Nothing in paragraph 5 of the new Schedule 8A affects the validity of a disposition made in breach of paragraph 5(1). In other words, if an overseas entity that is not exempt makes a disposition at a time when it is not a registered overseas entity, while the disposition will not be capable of registration and the entity will have committed an offence, the validity of the disposition itself will not be affected. This is intended to avoid situations where a potentially void, voidable or unenforceable transfer causes significant disruption to a chain of conveyances.
	Paragraph 5(7) of the new Schedule 8A sets out the penalties for offences committed under paragraph 5. Those guilty of an offence on summary conviction face a term of imprisonment of up to six months or a fine not exceeding the statutory maximum, or both. Where convicted on indictment, liability is up to a term of imprisonment of five years, or fine, or both.
	Paragraph 5(8) of the new Schedule 8A provides that proceedings for an offence under paragraph 5 may only be brought by or with the consent of the Secretary of State or the Director of Public Prosecutions for Northern Ireland.