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Changes to Tier 1 Investor visas

• The current £1 million minimum investment threshold is being raised to £2 million.

• A change is being made to require the full investment sum to be invested in prescribed forms of investments (share or loan capital in active and trading UK companies, or UK Government bonds), rather than 75% of the sum as at present. The ability to invest 25% of the investment sum in other asset classes, including residential real estate, has been removed.

• The current requirement that the Tier 1 Investor’s investment must be “topped up” if the market value of the investments falls is being removed; instead Tier 1 Investors will only need to purchase new qualifying investments if they sell part of their portfolios and need to replace them in order to maintain the investment threshold.

• The existing provision under which the required investment sum can be sourced as a loan is being removed.

• Transitional provisions will be introduced so that existing Tier 1 Investors will not be subject to these changes when they apply for extensions or for indefinite leave to remain.

If you would like any further information please get in touch with your usual contact, Ceris Gardner or Emily O'Donnell.

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