Investors
Introduction
An investor is someone who has at least £1 million to invest in the United Kingdom and who wants to make the UK their main home.
There are restrictions on the investments that individuals can make if they come to the UK in this category. If investors do not wish to mainly reside in the UK however, they can invest their money exactly as they please and can make trips to the UK for up to six months at a time as a visitor.
Aims of the provisions
To encourage long term investment in UK businesses from wealthy individuals who plan to reside mainly in the UK.
Legal Requirements
Applicants must be able to show that:
- They are going to make the UK their main home.
- They have at least £1 million that they will bring to the UK. This can either be the applicant’s own money which is not held in trust; or, it can be loaned money if they have a personal net worth of at least £2 million and the loan is from a financial institution regulated by the financial services authority.
The calculation of the personal net worth includes illiquid assets such as property, offshore trusts and assets held by the applicant's spouse if the spouse is also coming to the UK.
- They have a plan of their proposed investments.
The plan must show that they are going to invest at least £750,000 of their capital in UK Government bonds or in share capital or loan capital in active and trading UK registered companies other than property companies; and
- they can live in the UK without help from public funds or having to work as an employee.
- they will need to show that they will receive enough money to support and accommodate themselves and any dependants without having to work as an employee.
Individuals can work on a self-employed basis. If they need to add to their investment income by earning money on a self-employed basis, they should provide details of the work that is planned in the application. For example, an individual could plan to work as a non-executive director or consultant, or own his or her own company. The applicant’s spouse and/or dependent children can be given permission to come to the UK with the applicant and can work while they are here as dependants.
Successful applicants must invest at least £750,000 according to strict rules. Acceptable targets for this main investment include UK Government bonds or share capital or loan capital in active and trading UK registered companies other than property companies. The Immigration Rules refer to “property companies” as being companies whose main business is property investment and whose main function is to own or manage land or buildings. It does not include, for example, construction firms, manufacturers or retailers who own their own premises – an investor could invest their initial £750,000 in these businesses.
Successful applicants cannot invest the initial £750,000in the following:
- Unit trusts – The initial £750,000 cannot be invested in Unit trusts. However, an applicant can invest in a regulated collective investment scheme such as a unit trust providing they have invested the initial £750,000 according to the requirements of the investor rules.
- Property companies – The initial £750,000 cannot be invested here. The Immigration Rules refer to companies whose main business is property investment. However, once applicants have invested at least £750,000 according to the rules, they can invest the £250,000, or any remaining sums, as they wish.
- Offshore companies – Individuals cannot invest in or through offshore companies. They must invest their money in the UK. However, they may invest their money in a wholly-owned subsidiary of an offshore company, although the investment must be in the form of loan capital. The subsidiary must be registered in the UK, active and trading, and directly benefit from the loan.
- Banks or building societies – Individuals cannot keep all their capital in a bank or building society. However, once they have invested at least £750,000 in the UK as required by the investor rules, they may keep the rest of their capital in a bank or building society in the UK.
Other important points
The funds are expected to be transferred to the UK when they have got entry clearance and entered the UK. For leave to remain purposes, the five-year qualifying period for settling in the UK as an investor will start when applicants have invested their funds here.
Applicants do not need to make the UK their only home, but they should spend more time in the UK than they do away to continue to qualify for Further Leave to Remain in the UK as an investor after the initial 12 month period.
Reinvestment:
Individuals can reinvest their shares if the new investment meets the requirements of the Immigration Rules and they can show that they are continuing to invest in the UK.
Other Investments:
Once individuals have invested at least £750,000, the capital they have left can include investments and major durable assets in the UK such as un-mortgaged property and significant works of art. Personal belongings such as jewellery and antique furniture do not count as major assets.
Necessary Documentation
As always the application will only be as strong as the documentation provided in support of it. Obviously, suitable documentation will vary on a case by case basis and our consultants can provide reliable advice based on individuals circumstances.
Period of Stay
Leave to remain / enter in the Innovator category is initially granted for 12 months after which time an application for Further Leave to Remain may be made subject to the applicant continuing to satisfy the legal requirements. A new application needs to be submitted at this point with the necessary evidence and Further Leave to Remain is usually granted for an additional 4 years.
Indefinite Leave to Remain (ILR) & Permanent Residence)
After 5 years in the UK as an Innovator, individuals will be eligible to apply for Indefinite Leave to Remain, otherwise known as permanent residence or settlement.
Other Useful Information:
- Home Office processing times: Usually 2 weeks, entry clearance varies
- Dependants: Husband/wife, dependant children under 18
