News

Tier 1 (Investor) Main Changes

Tier 1 (Investor) 

The Home Office implemented new changes to the Tier 1 (Investor) category on 29th March 2019.

Prior to these changes, individuals who applied under the Tier 1 (Investor) category, must have held funds for at least 90 days prior to their application. This requirement has now been extended to two years under the new rules.

Furthermore, banks have always been required to carry out all necessary due diligence checks and enquiries, but they must now confirm that these checks and enquiries have been carried out before the application is submitted.

Moreover, investors are now prohibited from investing in Government bonds, thus, the purchase of UK national debt is excluded from being a qualifying investment.
The rules for intermediaries have been tightened where investment is made via intermediaries. Intermediaries must now be regulated by the Financial Conduct Authority. Therefore, if the investment has been made in a company or trust which acts as a vehicle to invest, the qualifying investment will be the final destination and not any of the intermediary vehicles.

Thus, all evidence must be provided for each transfer of the funds to any intermediary vehicle(s) and from the vehicle(s) to the final destination of the investment.
The only exception to the above is where the individual has invested in a qualifying pooled investment vehicle (one which has received UK or devolved government funding). It is allowed as the involvement of a UK or devolved government ensures that the investment is of benefit to the UK economy.

Another interesting factor is that the Home Office has redefined “Active and trading companies”. In order to satisfy the requirement of “Active and trading companies”, company must now:

  • be registered with UK Companies House;
  • be registered with HMRC for Corporation Tax and PAYE;
  • have accounts and a business bank account in the UK, with showing regular trading of goods and/or services; and
  • have at least two UK-based staff members who are not company directors.

For applicants who applied under the rules in place before 6th November 2014, extension application deadline is before 6th April 2020 and for settlements before 6th April 2022.
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. After this date the rules for active and trading (above) will apply.

For applicants who applied under the rules in place before 29th March 2019, the date for settlement application is before 6th April 2025.

You can read more about Tier 1 Investor category via this link: https://bararassociates.com/ourservices/tier-1-visas/tier-1-investor-visas/ 

If you would like to discuss or request more information about Tier 1 (Investor) Visa, please do not hesitate to contact our team of expert UK Immigration lawyers at: barar.london@bararassociates.co.uk or on 0207 487 8370.