CHANGES TO UK INVESTOR RULES FROM 13 JANUARY 2004

Recent changes have been announced to the UK Immigration Rules relating to investors to attract high net worth individuals to the UK and to ensure that the UK Rules remain competitive with other countries.

The modernisation of the rules will, for the first time, allow investors to utilise loaned funds for their investment in the UK. The funds must be obtained from an authorised financial institution and evidenced by a facility letter. In order to qualify the new Rules also require the applicant to demonstrate a personal net worth of at least £2 million. The personal net worth must be documented by original evidence to prove assets and liabilities but may include illiquid assets such as property and offshore trusts. In addition, the calculation may include assets owned by the applicant’s spouse providing the spouse is included in the application to enter the UK. An investor will still be required to invest £1 million in the UK.

This change will allow individuals with a high net worth in assets but not in cash held in their own name to meet the UK entry requirements. The UK government hopes that this will encourage an increase in the numbers of applications made thereby increasing investment in the UK economy.