THE UK INVESTOR VISA: QUALIFYING INVESTMENTS

INVESTMENTS THAT QUALIFY

You must have £2m available to invest in the UK.
The funds must be invested in qualifying investments in the UK at all times.
You must invest in the UK by way of:

  • UK Government Bonds; or
  • share capital or loan capital in active and trading UK registered companies, other than those principally engaged in property investment.

Investments against which loans have been taken out are not permitted.
An “active and trading UK registered company” must:

  • be a trading company that is doing business, not dormant;
  • have its registered office or its head office in the UK;
  • have a UK business bank account showing current transactions and
  • be subject to UK taxation.

You can invest in multi-national companies if they have a registered office or a head office in the UK.
All the capital invested must be maintained in the investment portfolio. That is, all of the capital will have to remain invested for the duration of your stay in the UK as a Tier 1 (Investor).
If an investment is sold, you must buy a new investment at the price at which the investment was sold.
For example, if you buy an investment for £200,000, but when it is sold it is worth £150,000, you must purchase a new qualifying investment for £150,000. Similarly, if the value of the £200,000 investment raised to £220,000 when it is sold, you must purchase a new qualifying investment for £220,000.
When you sell an investment, you must purchase a new one by the end of the next reporting period, or within six months, whichever is sooner.

You can:

  • remove any income generated from the portfolio, such as interest or dividend.

You can’t use invested capital to pay:

  • portfolio management fees,
  • transaction costs or
  • tax incurred through the buying and selling of investments,

if these charges will reduce the initial investment below the required threshold (£2m/£5m/£10m). However, if you invest more than £2m (or £5m or £10m), you can use the surplus to pay for the charges, providing the surplus was invested on or before the date the charges were incurred.

INVESTMENTS THAT DON’T QUALIFY  

  • Funds invested via an offshore company or trust.
  • Funds invested in open-ended investment companies, investment trust companies or pooled investment vehicles.
  • Funds invested in companies mainly engaged in property investment, property management or property development.
  • The funds cannot be solely invested by using deposits with a bank, building society etc.
  • ISAs, premium bonds and saving certificates issued by the National Savings and Investment Agency.
  • Leveraged investment funds.

We will be happy to assist you with the Tier 1 (Investor) visa application, please contact Tatiana Svetlova tsvetlova@svetlovallp.com.