Legal News

Duncan Lewis Immigration Solicitors bring to you all the information you should need to know about the government’s latest changes to the popular Tier 1 Investor Visa and Entrepreneur visa schemes.

Recently the Home Office announced changes to the immigration rules for Tier 1 Investor and Entrepreneur Visa applicants. These changes took place on the 6th April. In addition to these changes, the amount such applicants are taxed has changed as there are increases to the remittance basis charge.

Tier 1 Investor Visa applicants

Due to several changes forward planning is now a crucial part of applying for your Tier 1 Investor Visa.

It is now a requirement for an applicant to open a UK bank or Investment account before or during the application for a visa process. This means that an applicant may need to spend more time in the UK in order to open an appropriate account. Therefore the time required to process the opening of the bank account needs to be anticipated.

Historically, problems arose where a visa applicant invested in qualifying investments but had failed to notice when these had dropped in value beneath the necessary threshold. This mean that there was potential for an visa renewal application to be rejected on the grounds that the applicant had failed to hold the minimum investment for the duration of the visa. This problem could be resolved by “topping up” the qualifying investment with additional funds, but this had the potential to create harmful tax consequences as bringing foreign income or gains to the UK post-arrival could be taxable remittance.

From the 6th April 2015 there will be no need to top up the qualifying investment if its value decreases or an investment is sold at a loss, providing that the gross proceeds are reinvested in a new qualifying investment by the end of the next reporting period.

Tier 1 Investor Visa applicants need to ensure that they bring in sufficient tax-free capital upfront to pay for the projected expenses as the capital of the qualifying investment can not be used to cover investment management fees, UK taxes or other charges.

Any interest or dividends on the qualifying investment can be removed from the investment account and used however the applicant sees fit, for example to pay the tax thereon.

Tier 1 Entrepreneur Visa applicants

The rules for Entrepreneur Visa applicants have also been tightened. From 6th April an applicant will require a detailed business plan as well as being able to prove a genuine intention to create jobs.

Changes to the remittance basis charge

Onwards from the 6th April 2015 there will be changes to how wealthy migrants who do not plan to make the UK their permanent home (commonly known as non-doms) are taxed.

Foreign income and gains earned pre-arrival can still continue to be brought to the UK tax-free. However, post-arrival, can choose to be taxed on the remittance basis, whereby their UK source income and gains are taxed as they arise but foreign source income and gains are only taxed to the extent that these are remitted to the UK.

Non-doms, after being UK resident in seven out of the previous nine tax years, can elect to pay tax on worldwide income and gains as they arise, or can claim the remittance basis and pay the remittance basis charge of £30,000 per annum. There is no requirement to pay the remittance basis charge if the unremitted foreign income and gains are less than £2,000 per annum.

Furthermore, from 6th April 2015 the remittance basis charge will increase from £50,000 per annum to £60,000 per annum for those who have been resident in twelve out of the previous fourteen tax years. In addition a new band of £90,000 per annum will be payable by those people who have been resident in seventeen out of the previous twenty tax years.

Duncan Lewis Immigration Solicitors

Duncan Lewis is one of the UK’s leading private and business immigration solicitors and can advise migrants from the EU and from non-EU countries on a wide range of UK immigration matters, including:

• British citizenship

• Entrepreneur visas

• Fast-track detention process

• Five-year work permits

• Housing Benefit

• Illegal entry to the UK

• Marriage in the UK

• Student visas

• Visa overstays.

Duncan Lewis UK Immigration Solicitors may be able to handle your UK Immigration Visa matter on a no win no fee basis. For a free initial telephone consultation and expert legal advice on UK immigration law, call Duncan Lewis UK immigration solicitors directly on 020 311 41198 or email at businessimmigration@duncanlewis.com.

For urgent legal help with immigration – including fast-track detention – call the Duncan Lewis Emergency Hotline on 020 7275 2036, where an accredited immigration solicitor is available 24/7.