Changes to immigration rules for the United Kingdom (UK) announced and implemented immediately

Saturday 15 December 2012

Immigrants to the United Kingdom (UK) who apply for residency as investors will no longer be able to leverage their investment funds through loans.

Furthermore, investment funds held in offshore custody will no longer be accepted.

This was announced by the UK government on Thursday December 13. The rules came into effect immediately.
Investors and business people make up for the majority of migrants from the UAE applying for immigration to the UK.
This group applies through the Tier 1 programme, which has two routes: the investor route and the business route.
It is mostly the investor route that is impacted by the changes implemented.

Investors have the opportunity to settle in the country on the grounds that they have a net worth of GBP2 million (nearly Dh12 million) or a capital of GBP 1 million on their account, which can be invested in government bonds, for example.

Previously, this option was facilitated by financial institutions, which offer to finance the investment.

"A lot of investors used to do this. But, over the last couple of years, the interest rate on these loans has become very high," says Pej Mohyeddin, Immigration & Business Consultant at Bayat Legal Services.

Under the new rules applicants to the Tier 1 investors’ programme who submitted their application on or after December 13 will not be allowed to leverage their investment funds through loans or funds held in offshore custody.

According to the UK government this was already the case, however, it was never clearly mentioned.

"We accept that the previous rules and guidance were unclear on these points.

“Therefore, we are introducing a transitional arrangement which waives the requirement in respect of such loans and funds held in offshore custody, for applicants who entered the category (or the previous Investor route) or applied to do so before 13 December 2012," explains the statement of changes in Immigration Rules.

Business people are subdued to another list of conditions.

The business person must have an amount of GPB200,000 (nearly Dh1200,000) on his account, have business experience and hire at least two UK citizens in the company.

Minor changes were made to the business application scheme; indefinite leave to remain for a person established in business under the provisions of an EC Association Agreement may be granted, whereas this clause was previously deleted from the Tier 1 programme.

No changes were made to the Skilled Labour Programme, which is considered to be a narrow programme leaving very little opportunity for skilled labourers to apply.

"The skilled labour programme is not a very popular programme in the UAE," says Pej.

"Immigration opportunities to the UK are most appealing for investors and business people.

"This year we saw maximum 25 people apply for immigration to the UK through these programmes," he adds.

The UK remains a popular destination for immigration among UAE residents and is probably the most opted country after Canada and Australia.

Major changes to UK immigration rules expected next week

Monday 10 December 2012

Big changes will be made to immigration rules for the United Kingdom next week, according to consultants dealing with immigration to the country.

While the details of the changes are not yet clear, it is expected that the skilled labour programme is likely to be affected.

Changes could also be made for current investors and business people, who can apply through the Tier 2 programme.

The UK is one of the popular immigration destinations for UAE expats seeking long-term residency abroad.

Over the past couple of years the options for skilled labourers have been at a minimum and the UAE saw mostly investors or business people take off the country. "The skilled labour programme is not a very popular programme," says Pej Mohyeddin, Immigration & Business Consultant at Bayat Legal Services.

Immigration opportunities to the UK are most appealing for investors and business people, who can apply for a visa through the Tier 2 programme.

This programme offers investors the opportunity to settle in the country on the grounds that they have a net worth of GBP2 million (nearly Dh12 million) or a capital of GBP 1 million on their account, which can be invested in government bonds, for example.

The investor option is facilitated by financial institutions, which offer to finance the investment.

"A lot of investors used to do this. But over the last couple of years the interest rate over these loans have become very high," says Pej.

"The programme is not as popular as it was before."

Business people are subdued by another list of conditions. The business person must have an amount of GPB200,000 (nearly Dh1200,000) on his account, have business experience and hire at least two UK citizens in the company.

Both groups are required to prove to have sufficient English language skills; a minimum score 7 in the IELTS test needs to be acquired.

"This year we saw maximum 25 people apply for immigration to the UK through these programmes," says Pej, adding that the skilled labour programme is not really an option at the moment.

However, the UK remains a popular destination for immigration among UAE residents and is probably the most opted country after Canada and Australia.

"People choose for the UK because it is nearby," says Pej. Other countries in the EU are less popular because of possible language barriers.

New UK visa rules curbs on foreign spouses

Monday 11 June 2012

London: Only those British nationals or residents with an annual income of at least Rs 16 lakhs will be able to bring spouses from the Indian sub-continent and other countries outside the European Union from July 9, the government announced on Sunday.

The new restrictions are part of the David Cameron government's efforts to reduce migration from outside the EU. The curbs on non-EU spouses are also intended to clamp down on bogus marriages and family visas, with migrants ending up on benefits from the taxpayer.

Home secretary Theresa May on Sunday said: "Like the rest of the immigration system, family visas have not been regulated properly for years."

"There have been sham marriages, people have been allowed to come to Britain without being able to speak English and there haven't been rules in place to stop people becoming a burden on the welfare state," she said.

"We're changing all of that. Our plans mean the thousands of people who wish to bring their foreign spouses, partners and dependants to live with them here in Britain will have to have sufficient financial independence to be able to support them without becoming a burden to the taxpayer," she added.

Theresa May, the Home Secretary, is planning a major immigration crackdown on tens of thousands of people who "abuse" family visas to settle in Britain, according to a leaked cabinet letter. The letter from Mrs May to Nick Clegg, which has been seen by The Sunday Telegraph, proposes a tough new minimum income of £25,700 a year for anyone seeking to bring a spouse, partner or dependant to the UK from outside the European Union from June - almost double the current threshold of £13,700. The minimum income would rise dramatically - up to £62,600 - if children are also brought in.
Mrs May also wants a longer probationary period of five years before spouses and partners can apply to live permanently in Britain, and a higher level of English to be required. The proposals could cut the number of immigrants allowed in by 15,000 a year - a significant step towards the Government's aim of reducing "net" migration to 100,000 people each year. However, they are expected to fought hard by Mr Clegg and other Liberal Democrat ministers, escalating still further the tensions between the two Coalition partners that have risen dramatically since last week's controversial Budget.
On the controversial issue of foreign criminals being prevented from deportation on human rights grounds, May said she would be seeking the backing of Parliament for new guidelines for the courts spelling out how they should apply the European Convention on Human Rights in such cases.

Besides the income threshold, other curbs include a longer period, from two to five years, before the non-EU spouse can be granted permanent settlement.

Sponsor of a non-EU spouse, will have to earn at least 18,600 pounds (nearly Rs 16 lakhs) a year and if they have a child the threshold will rise to 22,400 pounds, rising by 2,400 pounds for each additional child.

"I think it is important that if people are bringing people into the UK to create a family here in the UK that we say that you should be able to support yourselves and not be reliant on the state," May said.

Any British citizen or an individual with resident status will also have to sign a five-year undertaking that they can "maintain, accommodate and care" for their elderly non-EU relatives without access to public funds such as carer and disability allowances, housing and council tax benefits and winter fuel and cold weather payments.

The new restrictions have already drawn criticism from human rights groups, and the Joint Council for the Welfare of Immigrants (JCWI), who see the curbs as an attack on the right of migrants to family life.

Shami Chakrabarti, director of the human rights group Liberty, said: "Given the toxic nature of immigration politics in a recession, it becomes especially important to distinguish between abuse and criminality and anything that splits up genuine innocent families of British nationals."

"Any income based assessment of this kind automatically discriminates against women, retired people, disabled people, the young and many minority ethnic people," JCWI said.

"It is well known that pension levels and wages for these people are proven to be lower than average in the UK," it added.