Investor Visas Bring UK £700m in 12 Months

Investor Visas Bring UK £700m in 12 Months

There were 735 applications for UK Investor, or Tier 1, Visas in the 12 months to June 2014, figures released by the Home Office show. That represents a 40% increase on the previous year. The single largest national group was from China, with 295 successful applications.

The figures have been released as the terms under which people can apply for an Investor Visa have changed. Whereas until now it was necessary to invest £1m into the UK economy, that figure has been doubled to £2m. (For a full description of the new terms, see, UK Tightens Investor Visa Rules, at https://orcap.co.uk/uk-tightens-investor-visa-rules-with-expert-comments/.)

The figure for Chinese investors seems especially significant when compared with earlier years. Although this is the second year in a row that Chinese investors top the list, this latest figure is 71% higher than in the previous 12-month period. Yet as recently as 2010 there were only 20 applications from China.

The number of applications from Russia has risen significantly, too. In the 12-month period to June there were 180 Investor Visa applications from Russians approved by the Home Office, which is more than double the total for the previous year. This increase is thought to be linked to the situation in Ukraine and political uncertainty in Russia, and is likely to continue upwards this year.

The rise in the price of investment from £1m to £2m does not seem likely to deter many of those seeking the Investor Visa and the security and often peace of mind it brings with it. To put it bluntly, in most cases those who can afford to invest one million pounds can also afford two million.

It would seem that it is exactly security and peace of mind which are among the strongest driving factors behind many applications for the Investor Visa. The political system in the UK is seen as stable; private schools provide an excellent standard of education; and the risk some face of kidnap of themselves or members of their families is seen as low.

This desire for a secure family home helps to explain why the majority of applications for Investor Visas come from women. More than two-thirds of the Chinese applications – 210 – were from female applicants. This is also linked to the terms of the visa, under which the applicant has to be resident in the UK for a minimum of 150 days in any year. Many men who might otherwise apply either do not want to restrict themselves in this way or simply cannot for business reasons.

More news on UK visas came out of the visit by the British Prime Minister, David Cameron, to Australia for the G20 Summit. Mr Cameron announced that the UK is extending its Super Priority Visa Service, under which business people and those needing to travel urgently can receive a decision on their visa application within 24 hours. The system, whereby applicants pay an extra £600 on top of the usual visa fee, already works in China and India. There are around 100 such applications each month in China, and 50-60 in India. This facility will now be available in the Philippines, Thailand, Turkey, South Africa and the United Arab Emirates, as well as in the visa processing centres in New York and Paris.

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