In recent years many wealthy non-EU citizens have wished to take up residence in the UK. Many of those people come from Russia and other CIS states, China and, more recently, the Middle East. The UK has also welcomed many citizens from the US as well. These individuals, entrepreneurs and families have accumulated significant wealth and are seeking to diversify this wealth whilst having residence rights in a jurisdiction of economic and political stability.

In many jurisdictions, obtaining residence visas can be fraught with red tape, delays, quota restrictions and other hidden difficulties, often resulting in refusals of such applications. With the assistance of London & Capital, relocation of residence to the UK can be straightforward.

The UK offers a settled but rewarding lifestyle. The enviable tax concessions are complemented by a world-class private education system, a highly developed financial sector, a sophisticated and varied cultural scene and the UK’s status as an international travel hub.

Running a business from the UK still affords reputation and prestige. As well as tax breaks for non-domiciled individuals taking up residence, there is a very pro-business Government with a committed agenda to lower tax rates for businesses and make the UK the jurisdiction of choice for multi-national enterprises.

Such benefits make the UK a compelling place to both work and reside.

How can you apply to reside in the UK?

There are many ways to apply but at London & Capital we are focusing on the Tier 1 Investor Visa rules.

A Tier 1 Investor Visa is specifically designed for wealthy foreign nationals who wish to relocate to the UK and invest a minimum of £2m in the UK economy.

Successful applicants are granted an initial 3 years and 4 months stay in the UK with the possibility of an extension of a further 2 years if all essential requirements are met. There are also programmes for £5 million and £10 million with shorter investment terms (2 and 3 years respectively).

Investor Visa applicants are permitted to be accompanied by their spouse and children under 18 who can take advantage of the same benefits as UK citizens.

• No requirement for English language proficiency
• The amount of money that needs to be evidenced means that successful applicants may not have to work
• No requirement as to the applicant’s ability to support themselves, and any dependent’s, financially (proof of investment is good enough evidence)

Comparisons with other Countries

If we look closer to the UK Investor Category and compare it with other immigration through investment programs existing in the world we can easily see there are many reasons to consider considering the UK Investor Category:

The amount of the required investment is comparable to other jurisdictions.

Unlike Canadian and Australian business and investment programs, the UK Investor Category does not require applicants to have business experience. In other words 100% of invested capital can be inherited or acquired in other legal ways. The UK program does not involve medical evaluation and interviews are often waived. The investment programs for the UK do not require English language proficiency.

The Home Office normally takes between 1-3 months from submission of a Tier 1 Investor Visa application to approval. Processing time is dependent on whether the application is made in the UK or abroad.

The focus is on the Principal Applicant with respect to the residency requirements. It means that in cases when the core business in your home country requires much attention your spouse can become the Principal Applicant. You will also be able to travel between your home country and the UK without fear of losing your residency because of insufficient days spent in the UK annually.

To sum up, if you are a high net worth individual and considering relocation to another country, the UK seems to be one of the best options possible for the following reasons:

• Reputable democracy with rule of law
• Quality of life is high compared to many other jurisdictions
• Business and working opportunities throughout the UK and European Union
• Reputable educational system for your children
• Attractive tax regime for high net worth individuals classified as “UK resident and non-domiciled”
• Visa-free travel to many countries after obtaining a UK passport (which is possible after 6 years of residence in the country if the initial investment was £2m. There is a shorter time horizon for investments of £5m and £10m)
• Dual citizenship is recognized. You are not expected to renounce your previous citizenship before getting a British passport

British Citizenship

After 5 to 6 years of residence (dependent on the initial investment), application can be made to be a British Citizen and have the right to a British passport. Not only does this give permanent right of abode in the UK but also EU-wide travel and residence rights, as well as visa-free access to other countries such as the US. In addition it also allows you to work in any other European Country without any of the red tape.

The requirements are more stringent for citizenship than for the investor visa, it will be necessary to demonstrate that the applicant has not left the UK for more than 90 days a year in the previous 5 years. There is also a general requirement to be of good character.

You may apply for British Citizenship, having been granted indefinite leave to remain, provided that you have:

• been resident in the UK for at least five years; and
• been present in the UK five years before the date of your application; and
• not spent more than 450 days outside the UK during the five-year period (although the Home Office has discretion to disregard absences in excess of 450 days in certain circumstances); and
• not spent more than 90 days outside the UK in the last 12 months of the five-year period (although the Home Office has discretion to disregard absences in excess of 90 days in certain circumstances); and
• not been in breach of the Immigration Rules at any stage during the five-year period.

As will be noted from the above, the rules relating to absences for British Citizenship are more stringent than those for indefinite leave to remain and if you would like to obtain British Citizenship it would be sensible that you:

• spend no more than 450 days outside the UK during the five-year period; and
• spend no more than 90 days outside the UK in the last 12 months of the five-year period.

Tier 1 Investor visa extension

Tier 1 Investor visas are granted for a period of 3 years and 4 months on initial approval. Near the end of this period, you can apply for an extension.

After 5 years, you may qualify for Indefinite Leave to Remain (ILR). An application for ILR would allow you to remain in the UK indefinitely, without a time restriction on your visa.

Before being granted ILR, you will need to show that you have sufficient knowledge of language and life in the UK. To demonstrate this knowledge you must pass a test known as the “Life in the UK Test”.

Investment of £2 million

As an investor you will qualify for indefinite leave to remain (ILR) after 5 years, provided that you have invested £2m in the UK.

Investment of £5 million

If you invest £5m you will be able to apply for ILR after the investment has been in place for 3 years.

You are not permitted to be absent from the UK for more than 185 days in any 12 calendar months to qualify for settlement for any of these categories.

You may apply for your spouse and children under 18 to accompany you as your dependents. The dependents will be given full rights to work in the UK apart from working as a Trainee Doctor/Dentist or professional sportsperson or sports coach, provided this does not affect their dependent status.

Education

Your children entering the UK as your dependents are entitled to the same free education as British children. You may choose to send your children to a private school if you wish.

Health care

You and your family are eligible for free health care provided by the National Health Service. You are not required to take out private health insurance.

credit; London&Capital