Tier 1 investor visa

Investment

Tier 1 investor visa investment levels

A Tier 1 (Investor) migrant must invest not less than £2 million in the UK.

However there are actual three levels of investment, £2 million, £5 million and £10 million. 

The £2 million has a settlement period of 5 years, the £5 million and £10 million investment are classed accelerated settlement as they could qualify for ILR after three years or two years, respectively.

Tier 1 investor visa investment timescale to invest

Your investment must be made:

• within 3 months of your entry to the UK, if you were granted entry clearance as a Tier 1 (Investor) Migrant and there is evidence to establish your date of entry to the UK, unless there are exceptionally compelling reasons for the delay in investing, or

• within 3 months of the date of the grant of entry clearance or leave to remain as a Tier 1 (Investor) Migrant, unless there are exceptionally compelling reasons for the delay in investing, or

• where the investment was made prior to the first grant of leave as a Tier 1 (Investor), no earlier than 12 months before the date of the application which led to the first grant of leave as a Tier 1 (Investor) Migrant, and, in each case, the level of investment must have at least been maintained for the whole of the remaining period of that leave.

Tier 1 investor visa qualifying investments 

The investment must be made into UK share capital or loan capital in active and trading UK registered companies. UK corporate bonds are also acceptable and covered under loan capital.

UK Corporate bonds

UK Corporate bonds, since the removal of UK government gilts, have become the new low risk investment route.

UK corporate bonds provide surety regarding redemption values, where held for the full term, coupled with a secure cash flow. It is worth noting that a corporate bonds credit rating will affect the yield, namely bonds with a rating of BBB (on S&P)or Baa(on Moody’s rating) or better are considered “investment-grade.”

It is these corporate bonds that seem most likely to become the new “safe haven investment” for the overwhelming majority of Tier 1 investor visa applicants.

Definition of “Active and trading UK registered companies”

Under Tier 1 investor visa qualifying investments it states:

"The investment must be made into UK share capital or loan capital in active and trading UK registered companies." So what would qualify as "active and trading UK registered company"?

 

Active and trading UK registered companies means companies which:

  1. (i) are registered with Companies House in the UK;

  2. (ii) are registered with HM Revenue and Customs for corporation tax and PAYE;

  3. (iii) have accounts and a UK business bank account, both showing regular trading of its own goods or services;

  4. (iv) have at least two UK-based employees who are not its directors.

Excluded Tier 1 investor visa investments 

There is also a list of excluded investment for the Tier 1 investor visa. These are set out in the immigration rules paragraph 65 .

This mainly covers investments that are:

  • Offshore company or trust, or investments

  • Open-ended investment companies, investment trust companies, investment syndicate companies or pooled investment vehicles.

  • Companies mainly engaged in property investment, property management or property development

  • Deposits with a bank, building society 

  • ISAs, premium bonds and saving certificates

  • Leveraged investment funds

  • UK government bonds

These are as important as the qualifying investment as they will not be accepted when you apply for you extension of stay or settlement.

Tier 1 investor visa investment level of involvement 

We give you the control over the level of involvement you wish to have in your investment process.  We offer three different service levels.

Discretionary

With the discretionary service you give the broker authority to deal on behalf of a client and to make investment decisions without their prior approval. A discretionary service will be based on a comprehensive assessment of your personal financial situation including your objectives and your attitude and capacity for taking risk. 

​Advisory

With an advisory portfolio, an investment manager will provide guidance with the construction and ongoing maintenance of your portfolio, including advice regarding investment decisions. However, you as the client, have the decision whether to act on this advice or not. This service will based on a comprehensive assessment of your personal financial situation including your objectives and your attitude and capacity for taking risk.

Execution-Only

This service provides you with direct access to UK Corporate Bonds and Equities. You can talk to a qualified stockbroker before executing a trade, but you will not be given any advice and any investment decisions will be your own.

Investor visa portfolio management

Detailed risk assessment allows us to match investors to the right risk profile and corresponding asset allocation model

The information provided has been based around a new Tier 1 investor visa application, the rules can be very complex and can vary based on dates of application. Please contact us for further details.

Tier 1 investor visa

INVESTMENTS

We give you the control over the level of involvement you wish to have in your investment process for your tier 1 investor visa.  We offer three different service levels.

 

Tier 1 investor visa

LEGAL

We provide you with expert lawyers that have a wealth of experience in completing tier 1 investor visa applications.

 

Tier 1 investor visa

TAX

To ensure you protect your capital, this is the best place to start.

Tax is normally the forgotten part of the tier 1 investor visa process, your residence for tax is completely separate from immigration and nationality issues.

Investments carry various degrees of risk that may depend on the amount invested, its duration and most importantly the rate of return. Safer investments provide a greater assurance that you can keep what was originally invested, though the rate of return may be lower. Higher risk investments may offer a higher rate of return; however, the risk that you may lose money on the investment increases.

Guardian Stockbrokers Limited is authorised and regulated by the Financial Conduct Authority (No. 492519).

Registered office: 14 City Road, London EC1Y 2AA. Registered in England and Wales. Company No. 06756375. 

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