On 9 October 2013, the Minister for Immigration asked the Migration Advisory Committee (the "MAC") to consider whether the investment thresholds under Tier 1 (Investor) category are appropriate to
On 9 October 2013, the Minister for Immigration asked the Migration Advisory Committee (the "MAC") to consider whether the investment thresholds under Tier 1 (Investor) category are appropriate to deliver significant economic benefits to the UK. At present, the minimum level of investment for the Investor category is £1 million but accelerated settlement status (also known as Indefinite Leave to Remain) can be achieved by investing either £5 million or £10 million and migrants may use money loaned to them by UK banks when making the investment. The £1 million threshold has remained unchanged since its introduction in 1994.
The MAC report was published last week. The main findings/recommendations made by the MAC are as follows:
The MAC's report is an advisory document which analysed the economic benefits of the Tier 1 (Investor) category and proposed alternative recommendations to generate greater benefit for the UK. The Government must now decide whether to implement the MAC's recommendations and any proposed changes are expected to come in force in April 2014. As such, we strongly encourage any applications under the current rules be submitted as soon as possible.
For further information, please contact Lynn McCloghry.
The MAC report was published last week. The main findings/recommendations made by the MAC are as follows:
- The minimum threshold should be raised from £1 million to £2 million.
- Several of the current restrictions on permissible investment instruments should be relaxed so as to permit wider investment activity. The report found that alternative investments such as investments in private UK companies; Venture Capital schemes; Angel Investments; Infrastructure Bonds and Property Developments would deliver greater economic benefit to the UK rather than simply investing in UK Government bonds.
- Remove the requirement to "top up" investment funds where the value has dropped below the prescribed amount due to market fluctuations.
- Remove or restrict the proportion of investment permitted in UK Government bonds to drive investment elsewhere.
- Introduce a "premium route" instead of the accelerated investor routes of obtaining settlement after three years if invested £5 million or after two years if invested £10 million. The premium route would operate akin to an auction process limiting the number of visas available for accelerated settlement (proposed to be around 100 applicants per year) with a reserve price of £2.5 million. The reserve price would comprise £2 million investment plus an additional gift of at least £500,000 plus any excess above the reserve price donated to the UK Government to be applied to a specific "good causes" fund similar to the arrangements used by the National Lottery.
- Relax the residence requirements for those applicants on the "premium route" so that investors need only be resident in the UK for 90 days per year, rather than the current 180 days per year.
The MAC's report is an advisory document which analysed the economic benefits of the Tier 1 (Investor) category and proposed alternative recommendations to generate greater benefit for the UK. The Government must now decide whether to implement the MAC's recommendations and any proposed changes are expected to come in force in April 2014. As such, we strongly encourage any applications under the current rules be submitted as soon as possible.
For further information, please contact Lynn McCloghry.