On Friday 7 December 2018 the UK Government suspended the UK Tier 1 (investor) Visa regime at very short notice. These visas allow the right to live in the UK in exchange for investing at least £2m into the UK for a period of 5 years, after which the individual may be eligible for indefinite leave to remain in the UK. The visas have been popular with wealthy individuals from outside the EU and have brought significant funds into the UK since they were first introduced 10 years ago. However, last week, the Government put a freeze on the regime citing money laundering concerns.
Today, the Home Office has backtracked on this suspension and the system appears to be back up and running.
Whilst the unfreezing of the Investor visa regime will be welcome, the overall impact of the last few days will be to add to uncertainty at a time when investment into the UK should be encouraged. It is probably also safe to assume that changes to the Tier 1 (investor) visa program will come at some point given that the government believe they are being used for money laundering.
If you would like to discuss the tax implications for moving to the UK or how you may be taxed on different types of investments, please contact us.