Tier 1 Visas – What are they and how we can help?
Tier 1 Visas have been set up to encourage foreign investment. The UK Government and UK Border Agency have created an investment structure that grants indefinite leave to remain in the UK or they can be used as a possible key component when applying for British citizenship.
The number of wealthy migrants entering the UK on these specialist Visas, that are designed to attracted millionaire investors increased by over three-quarters last year. Mainly led by people from Russia and China looking to put down roots in London.
Tier 1 Visas were introduced in 2008 to allow wealthy individuals with at least £1million to invest to remain in the UK on a long term basis. They are a quick way for foreign nationals and their children to become British Citizens.
London is attractive to foreign nationals due to its global connections, stable property market and an array of good private schools. Russians are also particularly attracted to the UK following a cutback on dissent in Russia after the election of Vladimar Putin.
Since April 2011 there has been a sharp increase in the number of Visas due to the rules being changed to encourage more applicants. 419 in the last 12 months at the end of June 2012 compared to 235 in the same period a year earlier.
Following last year’s rule changes investors can obtain an indefinite right to remain in the UK more quickly.
Indefinite leave to remain can be applied for using the following investment structure:
- £1million investment over a 5 year term, indefinite leave to remain applied for after 6 years
- £5million investment over a 5 year term, indefinite leave to remain applied for after 3 years
- £10million investment over a 5 year term, indefinite leave to remain applied for after 2 years
The minimum amount that must be invested to qualify for the Investor Visa is £1million. Of which £250,000 can be invested in property, with the remainder to be invested in UK Investments such as shares or bonds.
The property boom in prime central London is being driven by overseas buyers. More than 60% of all purchases over 2 million are going to these buyers. Many of these investors are satisfying the Visa requirements by investing in UK stocks and shares, or UK Bonds as well as residential property. Investors from the USA and India tend to prefer these investments however the Chinese prefer a more cautious approach of investing in asset-backed businesses.
The alternative ways to gain UK Visas are becoming more restricted, which is making the Investor Visa a more favourable option.
How We can Help?
Hoskin Financial Planning has set up with a Specialist Discretionary Portfolio Manager to provide Financial Advice, and Management to clients across the globe looking to obtain a Tier 1 UK Investor Visa.
For more help and advice please do not hesitate to contact us at Hoskin Financial Planning.
Article by Debbie Day DipCII at Hoskin Financial Planning based in Felixstowe Suffolk.
or visit Debbie Day IFA