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New application deadlines for Tier 1 Investors in Government bonds

30 September 2019

There are new Immigration Rules in effect from 1 October 2019 which affect Tier 1 Investor migrants whose first grant of leave was made under the rules in place before 29 March 2019 and who have invested in UK Government bonds.

Firstly, the changes enable these people to make an extension application in the category on or after 6 April 2023, provided they move their investment out of UK Government bonds and into another form of qualifying investment before this date. They will also be allowed to make an application for indefinite leave to remain on or after 6 April 2025 provided they move their investment out of UK Government bonds before this date.

Secondly, if the affected investors do not meet the above deadlines, they can still apply for further extensions and settlement if they invest at least £2 million in qualifying investments before they apply for further extensions and maintain the investments for a fresh full qualifying period required for settlement.

These changes mean that the relevant Tier 1 Investors do not need to change their investment strategy straight away. They should however do so before the deadlines the Home Office has imposed if they want to avoid setting the time they have accrued towards settlement back to zero.

When reinvesting, the investors need to make sure that the funds they previously invested in UK Government bonds are moved into qualifying share capital or loan capital investments in active and trading UK registered companies. Certain investments do not qualify, such as investments in property investment, property management or property development companies, or pooled investment vehicles unless they are funded by a UK or devolved government department or agency. The gross proceeds from the sale of the bonds must also be re-invested in qualifying investments before the end of the investor’s next reporting period, or within 6 months of the sale, whichever is earlier.

If you have any queries about these changes, including the requirements for reinvestment, please contact a member of the Immigration team.

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