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Minimum investments for Tier 1 (Investor) migrants to increase to £2 million?

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Further to Verity Buckingham’s blog post on 28 January 2014 Possible changes for Tier 1 Investor visas in the UK , the Migration Advisory Committee (MAC) has now published its report looking at investment thresholds and economic benefits of the UK Tier 1 (Investor) route. The report concludes that the current regime is of most benefit to migrants and that steps could be taken to deliver clearer benefits to the UK. To this end, MAC has proposed an increase in the minimum investment threshold from £1 million to £2 million. It has also recommended changes to encourage investors to move away from investing in gilts to alternative investment instruments in the UK market. Further, MAC has recommended that migrants no longer secure investment funds by a loan from a UK financial institution. This is, in part, because MAC does not consider it beneficial to the UK economy to effectively transfer money from UK Financial Institutions to the UK Government.

The MAC report also suggests better use of premium applications (allowing for accelerated settlement) for a limited number of investors up to 100. Under the proposals, Investor migrants would make a sealed bid for the available entry visas (with a suggested reserve price of £2.5 million). Those who were successful would benefit from reduced residential requirements (90 days a year) and a settlement qualification period of two years. The report recommends that money received from bids is red-circled in a specific “good causes” fund.

The report can be reviewed in full via the following link: MAC report – Tier 1 (Investor) route – Investment thresholds and economic benefits

This report is advisory in nature. However, it is likely to inform the Government’s view about changes to the immigration rules. Any changes are expected to come into force in April 2014.

Prospective migrants considering an application under the Tier 1 (Investment) route, may wish to consider making an application before any changes come into effect.

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