Tier 1 Investor – Investments that are in the applicant’s ‘control’
R (on the application of JW and Others) v Secretary of State for the Home Department (Tier 1 Investor; control; investments) [2019] UKUT 00393 (IAC)
The Home Office implemented new changes to the Tier 1 Investor visa on 29th March 2019.
The changes effectively mean that investors who wish to apply for Tier 1 Investor visas are now prohibited from investing in Government bonds.
Additionally, the rules for intermediaries have been tightened.
This is highlighted in the recent ruling of the case of R (on the application of JW and Others) v Secretary of State for the Home Department [2019].
The issue, in this case, was that a company facilitated Tier 1 investments by loaning the Applicants £1 million and the Applicants signed the money to another company which was closely related.
When the Applicants applied to extend their visas or apply for settlement the question was whether their investments were ‘in the applicant’s control’ as they could only invest in a specified company.
The Upper Tribunal ruled that ‘control’ under the Immigration Rules meant that Applicants should be able to ‘manage and/or direct the use of the money, asset or investment’ in which they could make a choice and use.
However, the court highlighted that the 2 companies whose directors were married, and the terms of the loan agreement were poor with poor financial returns of the investment meant that the investments made by the Applicants could not have been for a ‘commercial reason’.
Therefore, the investment was not made out of choice.
For current Tier 1 investor visa holders in the UK, applicants must apply before 6th April 2023 for any extensions if they wish to rely on investments in government bonds provided that their initial Tier 1 visa was granted under the Rules in place before 29th March 2019.
You can read more about the case via the link below: https://tribunalsdecisions.service.gov.uk/utiac/2019-ukut-393
Should you wish to discuss your immigration matter please do not hesitate to contact our professional team of immigration lawyers at barar.london@bararassociates.co.uk or call us at 020 7487 8370. You can access more information about us via https://bararassociates.com/.
