18 Mar Tier 1 (Investor) scheme updates
The Tier 1 (Investor) category enables high net worth individuals, who decided invest at least £2m, to live, work or study in the UK. This visa also leads to settlement. Currently, the £2m funds can be invested in UK government bonds, share capital or loan capital in active and trading UK registered companies. The accelerated settlement option for the migrants allows them to apply for settlement after 2 years if they were to invest £10 million and after only 3 years if they invested £5 million in the UK.
However, the Home Office has announced significant changes as of 29 March 2019.
Source of funds
Applicants must provide evidence that the £2m funds have been under their control for 2 years, not only for the current 90 days. In the alternative, they will need to supply adequate supporting documents as to the source of their funds. For example, evidence that the funds were gifted to the applicant, a lottery win, a trust fund or sale of property.
UK bank account due diligence
From 29 March 2019, migrants are required not only to have an FCA regulated UK bank account for the purpose of investing in the UK, but the bank will also need to confirm that the letter issued from the institution has completed all the due diligence checks required by the regulator.
UK government bonds
Another change for the Tier 1 (Investor) category is that the applicants will no longer be able to invest in the UK government bonds.
What is an active and trading UK company?
From 29 March 2019, the definition of an active and trading UK company will be more strictly defined as:
- a business registered with Companies House in the UK;
- registered with HMRC for corporation tax and PAYE;
- has accounts and a UK business bank account showing regular trade of its own goods and services; and
- has at least two UK based employees who are not the directors.
Contact Our Immigration Team
For expert advice regarding any aspect of the Tier 1 (Investor) visa application, please contact our immigration team on 0203 384 3075 or contact us here.