The UK Government has announced changes to the immigration rules for the Tier 1 (Investor and Entrepreneur) Visa applicants with effect from 6th April 2015.
Tier 1 (Investor) Visa applicants
- There is a new requirement to open a UK bank or investment account before applying for the visa.
- The minimum age for applicants will increase from 16 to 18.
- How the investment account is managed has been clarified, there is no requirement to “top up” the £2 million investment if part is sold at a loss but the gross proceeds have to be invested in a new qualifying investment by the earlier end of the next reporting period or six months from the date of disposal.
- The capital cannot be used to pay any investment management fees.
- Interest and dividends can be removed from the investment account or used to pay the investment manager’s fees etc.
- Applicants will have to disclose the source of the funds if they have been gifted.
Tier 1 (Entrepreneur) Visa applicants
- Applicants will have to demonstrate that they have held the investment funds for 90 consecutive days.
- Applicants will have to provide a business plan to support their application.
- There is an extension of the “genuineness test” to extensions and indefinite lease to remain applications.
Tax breaks exist for foreign domiciled (“non-doms”) persons moving to the UK. Foreign income and gains earned pre-arrival can be brought to the UK tax free. Post arrival, non-doms can elect to be taxed on their UK source income and gains as they arise and on foreign source income and gains but only to the extent that the foreign income and gains are remitted to the UK. This is known as the “remittance basis”. Once resident in the 7th tax year non-doms can either elect to pay tax on worldwide income or gains as they arise or claim the remittance basis and pay the remittance basis charge. The remittance basis charge is £30,000 and increases to £60,000 after 12 years of residence and £90,000 after 17 tax years of residence.
Please let us know if you are interested in receiving further details on moving to the UK.