DJ Webb & Co. - Immigration Solicitors

UK RESIDENCE FOR INVESTORS & ENTREPRENEURS

UK RESIDENCE THROUGH INVESTMENT OVERVIEW
There are two avenues through which foreign nationals may obtain UK residence through investment

ENTREPRENEURS must invest £200,000 and are required to be actively involved in the day to day management of the company in which they invest. These are also sometimes referred to as ‘self-employed persons’ as their investment may take the form of setting up their own independent business.

INVESTORS are required to invest £1,000,000 into the UK and are not required to be actively involved in the management of their investments. Details.

Persons entering the UK through investment are granted residence for themselves, their spouse and their minor dependent children. After four years they may apply for permanent residence and one year later they may apply for British citizenship.

For more information about applying for citizenship visit our UK Residence & Nationality page.

RESIDENCE FOR BUSINESS ENTREPRENEURS
Business person and self-employed persons are required to invest a minimum of £200,000 in a new or existing business in the United Kingdom.

The main conditions that must be met for entry as a business person or self-employed person are:

The applicant must have £200,000 under his control and disposable in the United Kingdom.
He must be able to show that until the business provides him with an income, he will have sufficient additional funds to maintain and accommodate himself and any dependants without recourse to employment or public funds.
The applicant must be actively involved full-time in the running of the business by providing services on his own account, in partnership, or as a company director. He should have a controlling or equal interest in the business and his work should not amount to disguised employment.
His level of financial investment should be proportional to his interests in the business.
He should be able to bear his share of liabilities.
His share of the profits of the business should be sufficient to maintain and accommodate himself and any dependants without recourse to public funds or other employment.
He should not intend to supplement his activities by taking other employment in the UK.

In addition, the business should create employment opportunities for at least two persons who are already settled in the UK.

An application must be made for entry clearance to the applicant’s nearest British Embassy, Consulate, or High Commission overseas.

A comprehensive business plan must be prepared and submitted in support of the application. In addition, documentary evidence must be provided that the money to be invested in the business is under the person’s control and disposable in the UK.

Applications are forwarded to the Home Office in London for final decision.

ENTREPRENEUR APPLICATIONS WITH DJ WEBB & CO
Applications for entry clearance as an entrepreneur require careful preparation and must be accompanied by comprehensive and professionally prepared documentation.

While the basic requirements are relatively straightforward, there are many details with which prospective applicants should be familiar before entering into dialogue with the authorities.

We recommend that persons considering this type of application take professional advice from a specialist immigration solicitor.

DJ Webb has a great deal of experience in the preparation of entrepreneur applications and works with recognised accounting professionals to help clients prepare business feasibility studies in support of their applications.

We have helped many entrepreneurs from all over the world to settle in the UK. We offer sound confidential advice and are prepared to travel to provide advice and also to accompany entrepreneurs to their immigration interviews if required.

Contact our Special Investment Unit.

RESIDENCE FOR INVESTORS
The investor category has been added to the UK Immigration Rules to encourage inward investment to the UK.

In order to meet the requirements the applicant must:

Have at least £1 million of his own, which is under his control and disposable in the UK.
Invest at least £750,000 of this capital in UK Government Bonds, shares or loan capital in active and trading UK registered companies.
Intend to make the UK his main home.
Be able to maintain and accommodate himself and any dependants without recourse to public funds or other employment.
Hold a valid entry clearance.

Applications are normally made to the British Embassy, Consulate or High Commission nearest to the applicant’s place of residence.

THE UK AS A TAX HAVEN
London offers many attractions for the wealthy international investor.

Apart from its wealth of cultural, entertainment and eating offerings, and its position as one of the world’s major financial and investment centres, London can also be a tax haven for wealthy foreign residents.

It is possible for wealthy investors to structure their affairs in such a way that they can live in the UK while lawfully minimising their tax bill.

For more information on UK taxation please contact our Special Investment Unit.

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.

For a printable document that examines the various types of investment that can be made see UK Residence through Investment -

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.

There are various types of pooled or collective Investments which can be packaged to suit the client, and the Home Office requirements, regarding the rules of the Investor category.

These can be tailor made to suit the client's choice regarding risk, distribution of income, capital growth, mitigation of tax etc. We can refer the applicant to a firm of Independent Financial Advisors who have experience in this field, and who work closely with us monitoring existing Investments which previous clients have made.

Once the investment is made, the client can move money between various qualifying funds easily, ie switch money between Gilts and stocks and shares, at any time, again regarding market conditions.

As prevailing market conditions can change quite rapidly, each Investment is individually designed for the client. For further information, please do not hesitate to contact these offices.

(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).

UK INVESTOR APPLICATIONS WITH DJ WEBB
Applications for entry clearance as an investor must be carefully prepared. While the basic requirements are relatively straightforward, there are many details with which prospective applicants should be familiar before entering into dialogue with the authorities.

We recommend that persons considering this type of application take professional advice from a specialist immigration solicitor.

DJ Webb has a great deal of experience in the preparation of these applications and offers investors a highly personalised service.

We have helped many investors from all over the world to settle in the UK. We offer sound confidential advice and are prepared to travel to provide advice and also to accompany investors to their immigration interviews.

Where requested we will also accompany applicants and their families when they make the first entry into the UK at which time they receive resident status.

Contact our Special Investment Unit.

THE DJ WEBB & CO. SPECIAL INVESTMENT UNIT
This team of the very best specialists in UK investment immigration undertake all our work for investors and business entrepreneurs.

Applications are personally dealt with by David J Webb and Ben Sheldrick, both of whom have years of experience in this field.

We have helped many investors to settle in the UK and thereafter advise on residence, nationality and other matters.

We work with selected accounting, tax, financial and other specialists to offer a complete service where this is required.

Contact David J Webb or Ben Sheldrick 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

IMPORTANT NOTE: Material included in this site is provided for informational purposes only and does not constitute legal advice. Transmission of this information is not intended to constitute a lawyer-client relationship between DJ Webb & Co. and the user of the browser. No reader of this information should act or refrain from acting on the basis of this information without first taking professional advice on the basis of the specific facts and circumstances at issue.