Investing in a Visa

How can you quantify the price of freedom?

As an overseas national choosing to live in the UK, it is difficult to navigate the ever-changing immigration criteria to qualify.

The ‘Investor’ category quantifies the “price” of freedom to live in the UK at a cool £1 million. Having the money is not enough – the money must be your own or an irrevocable gift; you must be able to freely transfer it to the UK; and you must invest at least £750,000 in an ‘approved’ manner for 4 years. The remaining £250,000 can be invested in property.

A recent change allows a person with a personal net worth of over £2 million to use loans to him as part of the £1 million. Only investments made in the applicant’s personal name are acceptable and all tax efficient schemes such as offshore companies and trusts are specifically excluded in order to ensure, among other things, maximum tax benefit to the UK.

The applicant must intend to make the UK his main home. Although this may not sound difficult, it does impinge on high fliers who travel internationally, for personal or business reasons on a regular basis. The Home Office expects an applicant to spend 75% of the next 4 years in the UK to qualify for permanent residency. Although you will also be obliged to pay ‘rent’ in the form of tax on income from your investments, this will only affect income derived in the UK, making the UK not just a desirable place to live, but still a tax ‘haven’. A small price to pay for freedom to live and work throughout the European Union.

For further information, please contact:

Kamal Rahman
Tel +44 (0)20 7440 7143
kamal.rahman@mishcon.com