DJ Webb Immigration Solicitors - Special Investment Unit

This document examines the various types of investment that can be made under the UK Residence for Investors Program. 

The Investment

The qualifying investment must be made shortly after the investor enters the UK.

The investor is allowed complete control of the funds and they may be placed in long term investments or moved from one investment to the next as required.

However the investments allowed under this program are limited to specific types, including

Government Bonds (more often called "Gilts" or "Gilt-edged Stocks")

Stocks and shares, purchased either directly in public or private limited companies, or in the form of a "collective investment", such as unit/investment trusts or investment bond.

It is worth examining the various types of investment that can be made:

(a) Government Bonds

These bonds - issued by the British Government - are more often called "Gilts" or "Gilt-edged Stocks". The British Government is obviously a better credit risk than any public or private company. It is almost inconceivable that a dividend payment will be missed (see below) or that at the maturity date (when the investor’s original capital is returned) the maturity value will not be paid in full.

Gilts provide a regular income (through their fixed interest payments) and usually have a precise maturity date. Interest is paid net of basic rate tax. Government stocks are traded in the stock market, and their capital values move up and down depending on interest rates and investor demand. Some Gilts are index linked. This means that the income payments and the final redemption value are both linked to the Retail Price Index.

(b) Stocks and Shares

The shares of companies listed on the UK stock market give investors the opportunity to participate in the fortunes - good or bad - of the companies concerned. The value of a share (being simply the price at which people are willing to buy or sell it) moves up and down according to demand. Generally speaking, a share’s price is likely to rise when the company is operating well and its profits are expected to increase.

In addition, companies distribute a part of their profits to shareholders every six or twelve months. This is called a dividend and is paid net of basic rate tax. Higher rate taxpayers are liable for additional tax on dividend income at their marginal rate.

If a person makes a profit in selling a share, this will be subject to Capital Gains Tax although there are ways in which a person’s liability may be reduced or eliminated.

Although some people prefer to make their own investments in the stock market, it is more common for people (particularly persons from overseas who may not have a detailed knowledge of the UK economy and likely trading performance of various British companies) to make a "collective investment" through unit trusts, and/or investment trusts and/or investment bonds.

(c) 'Pooled' or 'Collective' Investments

(d) Private Companies

If an applicant intends to invest in their "own" company in the UK, they must provide evidence of shareholding or loan certificates in the form of legal documents signed by on or behalf of the company, and evidence that this company is active and trading. In other words, if a person wishes to inject further money in an existing business in the UK, but does not wish to manage the business on a day-to-day basis (as is a requirement of the Immigration Rules relating to self-employed business persons), he or she could invest £750,000 rather than the minimum £200,000 and enter as an investor rather than a businessperson. The extent of their subsequent involvement with the UK Company would be entirely up to them.

Note that further specific requirements apply, including that the investment capital cannot be held in a trust, and cannot normally be held in joint names (with the exception of applicant husbands and wives).

Back to the DJ Webb & Co. UK Residence through Investment Page

DJ Webb Immigration Solicitors 

Special Investment Unit

For more information contact 
David J Webb or Ben Sheldrick directly at

Tel +44 171 253 2400 (Please inform the operator that you are a new investment client)

Fax +44 171 253 2800

E-mail investors@webbimmigration.com

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