The UK is one of the most attractive places in the world to live and to do business. It is also an attractive base for wealthy individuals and families, due to the preferential tax treatment available to those who are not deemed to be domiciled here.
Economic heart of the world
London is a leading global city and the world’s most influential financial centre, alongside New York. It is a cosmopolitan city and caters for every taste and culture. London has the highest GDP of any city in Europe and is home to the corporate headquarters of numerous multi-national corporations, financial institutions, professional firms and other major organisations. The time zone falls between the US and Asia and therefore is an ideal location in the globalised business world.
Political stability and safety
The UK is internationally renowned for having a stable democratic government. It has a respected system of law which has been adopted by many countries across the globe including Australia, Canada, India, Malaysia, New Zealand and the US. London has its own elected Mayor and Assembly dealing exclusively with improving the city.
Ease of travel and mobility
In this time of increased globalization, the UK is one of the best places to be located for travel and mobility. London has high-speed rail links to Paris, Brussels, and onwards to the rest of Europe, as well as mainline links to the rest of the UK. London is the busiest airport city in the world, boasting five international airports: Heathrow, Gatwick, London City, Luton and Stansted.
Education
The UK is home to some of the best educational institutions, from pre-school to university.
Leading global universities, such as University College London, London Business School, Imperial College, London School of Economics, and King’s College, all have an excellent international reputation and are based in London. These institutions of academic excellence attract students from across the world. Henley & Partners, in collaboration with one of the leading education consultants in the UK, can assist our clients to find the best schools for their children.
Ownership of property
The registration of land title in the UK is established and land title is guaranteed. When one purchases a property in the UK, the conveyancing is done by Solicitors regulated by the Solicitor’s Regulation Authority (SRA). Funds used to acquire properties are held in designated and separate client accounts of nominated solicitors of the Royal Institution of Chartered Surveyors (RICS) Accredited surveyors are used to value and survey all properties prior to exchange of contracts. Property in the UK can be held as freehold or leasehold.
Tax
Tax liability is based on residence and domicile. Importantly, the UK Resident Non-Domiciled Individual (Non-Dom) status offers very attractive benefits to high net worth individuals. The UK thus remains an attractive option for tax residence.
UK Non-Doms are only taxed on UK source income and capital gains as and when they arise. Tax on foreign source income and capital gains occurs only when ‘remitted’ (i.e. brought into the UK), so if a foreign national coming to the UK only remits ‘clean capital’, he will not be taxed. An initial tax consultation is included in our service, however we strongly advise that each individual obtains comprehensive tax advice. Tax planning should be structured prior to the investor arriving in the UK.
Health Care
The UK is well known for its National Health Service (the NHS) which provides excellent free healthcare. However, it is also recommended to take out personal health insurance with a reputable company to cover costs of private medical care. The UK boasts some of the best medical care facilities in the world.
UK Golden Visa
The UK immigration rules are set to attract investors, entrepreneurs and people of talent.
Recent changes have seen the UK close immigration to highly skilled workers and some other immigration categories. Therefore, for wealthy individuals one of the best options in order to qualify for leave to remain in United Kingdom is the Tier 1 Investor Visa.
1. Entrepreneur Visa
TheTier1(Entrepreneur)category of the Points Based System is for those investing inthe United Kingdom by setting up or taking over, and being actively involved in the running of one or more businesses in the United Kingdom (UK).
UK Entrepreneur Program requires the main applicant to pass an English Language test before the visa is granted at quite a high level equivalent to 7.0 of IELTS examination. The applicant and his dependants (spouse and children under 18) can receive a visa for 3 years 4 months, then extend their stay by 2 more years. Subsequently, after spending 5 years in the UK in this capacity the main applicant and dependant family will be eligible to apply for ILR and 12 months later after obtaining the ILR – for British nationality.
The requirements are for the main applicant to have£50,000 to £200,000 available to set up a new business in the UK and create two new jobs for UK residents. The main applicant will be expected to work full time running his business, paying taxes, paying salaries (hence, more taxes) to the above-mentioned two new employees of his for the whole 5 year period.
2. Tier1 Investor Visa
The investor category is designed to allow wealthy individuals who make a substantial financial investment in the UK to obtain permission from the UK to enter as an investor under the Tier 1 category. The applicant must invest a minimum of GBP 2 million in the UK. The Tier 1 Investor category has the shortest Investor Immigration application processing time amongst the G8 countries and has very objective entry criteria with a predictable outcome.
The criteria specifies that the applicant must show that they have money of their own under their control in a regulated financial institution amounting to no less than GBP 2 million.
The individual must invest for five years in the UK by way of UK government bonds, share capital or loan capital in active and trading UK-registered companies (other than those principally engaged in property investment). Investment in offshore companies is not permitted.
The applicant is not required to show business experience or the ability to speak English. Some nationals (China, Russia, Nigeria among them) are required to undertake a TB test before submitting their application. Investors are permitted to be gainfully employed under this visa or undertake a course of study in the UK.
The UK expects the investor and their family to intend to make the UK their main home. In order to be granted ILR (permanent residency) the main applicant and their spouse should not spend more than 180 days per year outside the UK. All children who originally applied as their dependents will only be granted ILR if both parents are eligible for ILR.
The applicant will initially obtain the Tier 1 visa for 40 months. Within three months of entry into the UK, they are required to make the investment of GBP 2 million which must be maintained throughout the period of leave.
At the expiry of the initial 40 month period, the investor must apply for an ‘extension of stay’. The UK government will grant a two year extension of stay to the whole family if the investor has satisfied the requirements for leave to enter, i.e. maintained the investment and adhered to the other general conditions for leave to enter.
On April 6, 2011, the Government announced new rules which provide the ability to achieve Indefinite Leave to Remain in the UK (ILR), which is permanent residence, through an accelerated route. The new requirement is an increased investment. An investment of GBP 10 million or more will provide for settlement after two years, and an investment of GBP 5 million or more will provide for settlement after three years, instead of the usual five years. It is important to know that only the main applicant will have his/her route to permanent residence fast tracked through higher level of investment; their dependents (spouse and children) can only apply for permanent residence after living for 5 years in UK.
The main applicant’s spouse and children under the age of 18 years can apply as dependants. The UK investor visa does not provide for dependent parents, who may be required to apply for leave to enter the UK under a different visa category, although currently this is very difficult.
UK Permanent Residence
On completion of five years of continuous lawful residence, the investor may apply for Indefinite Leave to Remain in the UK (ILR). They must demonstrate that they have legally spent a continuous period of five years in the UK (or two or three years as appropriate if a larger investment option was taken), and have maintained the conditions required by the permit.
The main applicant and their dependants must pass the ‘Life in the UK’ test prior to gaining settlement, as well as showing that they have sufficient knowledge of the English language. There is also a criminality threshold that requires all applicants to be clear of unspent convictions.
United Kingdom Passport
In order to qualify for citizenship, the family must satisfy the residence requirements, i.e. to not have spent more than 450 days outside the UK in the previous five years; and not to have spent more than 90 days outside the UK in the year immediately preceding the application.
An applicant must first achieve ILR, which is usually possible within five years, and they can then apply for citizenship within one year, subject to meeting the criteria above.
Once citizenship and a UK passport have been granted, there is no restriction on the time that must be spent in the UK.
