What Are the Changes?
- The minimum investment threshold will be raised from £1,000,000 to £2,000,000;
- The full investment amount (instead of the previous 75%) must be committed by loaning a company money or buying shares in active and trading UK companies or UK Government bonds;
- Investors will no longer be able to source the investment amount from a loan; and
- Investors must increase their investment if they sell part of their portfolios and need to maintain the investment threshold but are no longer required to increase the investment amount due to a reduction in value.
Expanded Reasons for Denial
Additionally, immigration officials may now refuse a Tier 1 Investor application if there are reasonable grounds to believe that:
- The applicant is not in control of the investment funds;
- The funds were obtained unlawfully, according to UK law; or
- Approving the visa would not be conducive to the public good due to the character, conduct or associations of the investor.
Foreign investors submitting applications before November 6, 2014 will not be subject to these new rules, neither when they apply for initial Investor visas, nor when they apply for extensions or for indefinite leave to remain.
What This Means for Employers and Foreign Nationals
Investor visa applicants should apply for their visas before the November 6, 2014 effectuation date of the new rules, after which they may be disqualified from the category if they do not meet the new requirements.
This alert is for informational purposes only. If you have any questions, please do not hesitate to contact the global immigration professional with whom you work at Fragomen or send an email to [email protected].
© 2009 - 2015 © Fragomen, Del Rey, Bernsen & Loewy, LLP, Fragomen Global LLP and affiliates. All Rights Reserved.
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