Pandemic 'opportunities' for UK investor visas

What are the qualifying requirements of the Tier 1 (investor) visa in the UK?

David Sapsted

17 April 2020

The financial side-effects of the coronavirus outbreak could present an "excellent opportunity" for foreign entrepreneurs interested in applying for a Tier 1 (Investor) visa in the UK, according to a report from a leading international law firm.

Tier 1 investor visa qualifying requirements

The visa requires individuals to invest a minimum of £2 million in “qualifying investments” in the UK, which these days predominantly means shares in active and trading UK companies, says the report from Osborne Clarke, a legal practice headquartered in London with offices in a dozen countries in the US, Europe and Asia."Many commentators suggest now may be a good time to invest in the UK as shares which were until very recently at a high are now much lower. Whether the values will rise to their previous levels, and importantly when, remains very unclear, however," says the report."If you have, therefore, considered relocating to the UK using the investor route, now may present an excellent opportunity to do so, subject to receiving specific financial advice."

Seek professional financial management advice to mitigate risk

The report also "highly recommends" individuals seek professional financial management advice to mitigate possible risk before making any decision.For current Tier 1 (Investor) visa holders, the report says that, inevitably, many will have seen their portfolios shrink because the global slump in markets owing to the economic effects of the pandemic."From an immigration perspective, this is not all bad news for Investor visa holders," says the firm. "There is a common misconception that investments must be maintained at or above £2 million. In fact, new qualifying investments will only be needed for those selling their portfolios and needing to replace them."If you are an investor with a Tier 1 visa, a drop in your portfolio value will therefore not affect your immigration status. Importantly, your ability to extend your Leave or qualify for Indefinite Leave to Remain (ILR) will not be affected. Due to the current market volatility, however, should you or your investment managers sell any current investments, you must ensure the sale value is reinvested in further qualifying investments."If you have not yet qualified for ILR – and held your first Investor visa before November 2014 – you will need to ensure that your funds remain above the relevant threshold, being £1 million: that is £750,000 in investments and £250,000 in assets."