Investment limit is being raised to £2 million for TIER 1 Investors
01 November 2014
Recently, a statement of changes to the Immigration Rules was laid before parliament. These changes relate to the Tier 1 Investor route and concern the financial requirements involved.
The Tier 1 Investor route is designed for “high net worth individuals making a substantial financial investment to the UK” and was examined earlier this year in a report by the Migration Advisory Committee.
Following the publication of this report and the recommendations made, the route will be amended as follows :
- The minimum investment limit is being raised to £2 million from the current limit of £1 million.
- Investors will be required to invest the entire amount in specified investments in the UK. At present, only 75% of the funds need to be invested in such investments (the rest could currently be used to buy a UK property, for example)
- Currently, investment funds may be sourced through a loan from a UK financial institution. This option is being completely removed
- An application may now be refused if Home Office officials have reasonable grounds to suspect the legitimacy of the funding source (i.e. if they have reasonable concerns about the person/institution providing the funds or the legality of how the funds were obtained).
- The ‘topping-up’ rule is being completely removed (which required investors to invest again if the market value of their investments dropped).
Immigration Minister James Brokenshire also announced that there will be a government consultation on the types of investment that should be encouraged under this route to benefit the economy of the UK. This could mean further changes in the near future.
The changes outlined above will be made on 6 November.
Applications made before 6 November can be made under the current rules; none of the changes will apply to current holders of a Tier 1 Investor visa.
If you would like to apply under the Tier 1 Investor route either before or after the rule changes, contact us