Changes to UK Investor Rules from 13 January 2005
24 January 2005
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New rules have come into effect from 13 January 2005 to encourage high net worth individuals to come, invest and live in the UK and to make sure UK rules remain competitive with other countries. The UK government hopes that this will encourage an increase in the numbers of applications made. It will increase investment in the UK economy. The new rules will, for the first time, allow investors to utilise loaned funds for their investment in the UK.
The New Rules
Investors are no longer restricted to proving that they have no less than £1 million of their own money to invest in the UK.
The new rules accept that the £1 million may include money loaned by a financial institution regulated by the Financial Services Authority, where an investor can show assets (less liabilities) to the value of at least £2 million. This will help individuals with a high net worth in assets but not in cash held in their own name to meet the UK entry requirements.
- Under the new Rules you will need to show a personal net worth of at least £2 million.
- You must obtain the funds from an authorised financial institution regulated by the Financial Services Authority. You will also need evidence, and a facility letter will be fine.
- Your personal net worth must be documented by original evidence to prove assets and liabilities but may include liquid assets such as property and offshore trusts.
- The calculation may include assets owned by your spouse providing the spouse is included in the application to enter the UK.
- An investor will still be required to invest £1 million in the UK.
The rules relating to the range of investments is still the same as is the requirement that you make the UK your main home. See the investor category on this website for further details.
Applications for entry clearance as an investor require careful preparation and must be accompanied by comprehensive and professionally prepared documentation.
While the basic requirements are straightforward, there are many details with which prospective investors should be familiar with. Contact us and we will help you.