hi this video is about the tier 1
investor visa what you can invest in
under the rules and whether you can
invest in property under this route in
this diagram I'm going to show you the
key points you don't want to miss if you
are applying under this route or
considering the options for investing in
the UK that's a tier 1 investor visa
applicant so that at the end of this
video you'll know the key points on
which I advise my clients in this area
before we start I'm Tom Bradford and
this channel is all about helping you
reach abroad I'm a lawyer at the law
firm freeze and with my rich abroad UK
service I help entrepreneurs and
investors set up businesses and invest
in the UK and get the right visas and
support to access the UK and achieve
their business investment and
citizenship bills this video is part of
my series on the tier 1 investor visa
route so do subscribe and click the
notification bell to be notified when I
release them if you have a question put
it in the comments below and I will
answer it if you want a free initial
telephone consultation with me then
please contact me by email or Skype on
the details below are you allowed to
invest in UK property to get a Tier one
investor visa many of the other
citizenship by investment routes which I
cover in these videos do allow
investment in property so what about the
UK this is a question that clients put
to me well start with the basic
principles as a tier 1 investor you're
required to make your investment of 2
million 5 million or 10 million pounds
in the UK in the form of UK government
bonds or share capital or loan capital
in UK registered companies the companies
must be active and trading this means
they must be trading and not be dormant
there are some exclusions you should
bear in mind so funds that you are not
allowed to invest in your funds can't be
invested in open-ended investment
companies they can't be invested in
investment trusts companies or
investment syndicate companies and the
important restriction that I want to
focus on
the funds must not be invested in
companies mainly engaged in property
investment property management or
property development this means any
investment or development of property
which increases the value of property
with the view to earning a return
whether that's through rent or a future
sale is prohibited it doesn't permit the
management of property for renting us
out or for resale so the principle here
is that business income must be
generated from the supply of goods or
services it mustn't be generated from
the increased value of property or from
rent now this prohibition does not
exclude the provision of services in
relation to property so a client of mine
is investing into a business servicing
estate agents he isn't caught by the
prohibition so that's permissible hotels
in principle on court where rooms aren't
rented out and construction isn't
prohibited either in principle so you
should be alive to this distinction and
the exceptions if you want to discuss
your potential investment with me please
drop me an email and we can discuss how
to navigate this challenge I work with
investment portfolio managers who
specialized in managing Tier one
investments there are also some other
points to bear in mind the funds must
not be invested by using deposits with a
bank building society or any other
enterprise whose normal course of
business includes the acceptance of
deposits now again there are some
exceptions you also can't use leveraged
investment funds including purchase of
stocks or other investments by using or
owed funds and you can't rely on money
that alone has been secured against
another party would have a claim on the
money if loan repayments were not made
so this includes a scenario of a bank
lending funds to you and then taking the
investments of security just an
additional point to note funds that you
claim that are available but haven't
been converted into money don't count so
equity in your property for example
which hasn't been sold in your house
let's say doesn't count it won't be
sufficient and this is because until the
sale of these assets is complete and
cash is transferred to the seller
there's no guarantee that the estimated
value of the assets will be realized
from the point of view of the UK
government now there are various other
points you need to bear in mind in terms
of the process for investing under the
tier 1 investor visa brude you've got to
make your investment within three months
of a so-called specified date for
example now I'm doing a separate video
on this and the process involved so
check out my other videos on this
subject for the full picture I hope that
was helpful
do subscribe to the rest of the series
and click the bell to be notified when I
release them this channel is all about
helping you reach abroad for business
and investment if I can assist you on an
initial telephone consultation please
contact me by email or message me on
skype on the contact details below I'd
be happy to speak with you if this is of
interest please subscribe and like the
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release my future videos in this series
on the tier 1 investor visa route thanks
for your time and I'll see you in the
next video