TIER 1 ( Investor Visa)

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The Tier 1 Investor visa category is for high net worth individuals who are willing and able to make at least £2,000,000 investment in the UK.  Investor visa holders are permitted to work, study and engage in business activities.  They can also be accompanied or joined by their dependants.  The Tier 1 Investor visa typically leads to settlement in the UK after a period of 5 years.  Accelerated settlement is available to Tier 1 Investor visa holders who invest more in the UK

The requirements under the Tier 1 investor visa were tightened in March 2019 following a government review. The new regulations place more onerous criteria on applicants. As part of your application you will need to demonstrate:

• The £2 million investment is the minimum amount to qualify.
• The money for investment belongs either to you, your spouse or civil partner.
• The funds must be held in one or more regulated financial institutions. The UK bank holding your funds will need to confirm they have carried out all required due diligence checks and Know Your Customer enquiries.
• The funds are available to be transferred to and invested in the UK.
• The requirement to show source of funds if £2 million has been held for less than 2 years (previously 90 days).
• Applicants can be refused the visa if the Home Office have reasonable grounds to believe the funds used for the investment breached exchange controls.

UK Investor visa: 2 Year Route

The Tier 1 Investor visa immigration rules do not require investment funds to have been held for 2 years.

If you have held your investment funds for less than 2 years then you can still qualify for a UK Investor visa if the source of the funds was:

• a gift received by yourself (and/or your husband, wife, civil partner, or unmarried or same-sex partner) in the 2 years prior to the date of application; or
• the proceeds of sale of assets such as business or property within the 2 years before the date of application; or
• money held in your business (and/or the business of your husband, wife, civil partner, or unmarried or same-sex partner); or
• inheritance under a will received within the 2 years before making the application; or
• the proceeds of a divorce settlement received within the 2 years immediately before the date of application; or
• a financial award or winnings; or
• any other source provided that the source can be documented and independently corroborated.

If you have held your UK Investor visa investment funds for at least 2 years then you will not be required to provide specified evidence of the source of your funds.  

In particular, there is currently no requirement to provide an independent audit of financial and business interests as part of a Tier 1 Investor visa application.  

However, you will still need to satisfy the Home Office that your investment funds were lawfully obtained.

Tier 1 Investor UK bank account Rule: the legal requirement

Tier 1 applicants are required to have opened a UK bank account before submitting their initial Tier 1 Investor visa application.  In this post, we look at the basic requirements of the UK bank account rule for Tier 1 Investors and the various ways in which the UK bank account rule may be satisfied.

The Immigration Rules for Tier 1 Investors require that in an initial application for entry clearance or leave to remain as a Tier 1 Investor, the applicant must provide a letter issued by an authorised official of a UK regulated bank, on the official letter-headed paper of the institution.

The letter must be dated within the three months immediately before the date of the application and confirm that:

(i) the applicant has opened a UK bank account for the purposes of investing not less than £2 million in the UK;

(ii) the UK bank is regulated by the Financial Conduct Authority for the purposes of accepting deposits; and

(iii) the UK bank has carried out all required due diligence checks and Know Your Customer enquiries in relation to the applicant.

However, a policy document published by the Home Office suggests that the so-called UK bank account rule is more flexible than it may initially appear.

How long is a UK Tier 1 Investor visa valid for?

Your initial Tier 1 Investor visa will be valid for either 3 years and 4 months (if applying from overseas) or 3 years (if applying from within the UK).

You will need to invest at least £2 million in actively trading UK companies within 3 months of entering the category. You will then need to maintain your investment.

You will be able to extend your stay as a Tier 1 Investor visa holder for a further 2 years, before qualifying for indefinite leave to remain (settlement) after 5 years. There is also an accelerated route to settlement as a Tier 1 Investor migrant after either 3 years (if you invest at least £5 million) or 2 years (if you invest at least £10 million).

In order to settle in the UK as a Tier 1 Investor, you will need to spend not more than 180 days outside the UK in any 12-month period and, unless aged 65 or over, have sufficient knowledge of the English language and Life in the UK.