TIER 2 (GENERAL) VISAS – SHARE THRESHOLD

TIER 2 (GENERAL) VISAS – SHARE THRESHOLD

Patricia Marleau of our immigration team looks at the 10% shareholding limit for Tier 2 (General) visa holders and a solution to many under the new UK points-based immigration system. Contact our team for advice on 01905 900919 or email patricia@bradleyhayneslaw.co.uk.

Generally speaking, Tier 2 visa holders are not able to hold more than 10% of shares in the company that is sponsoring them unless they are a ‘high earner’ and earning an annual salary of at least £159,600. From a practical perspective, it could be argued that this is a crude rule for businesses and business founders wishing to work in the UK. Although it is possible for an individual to operate as a director and/or investor within a UK business on a Tier 2 visa, it can cause headaches from a corporate point of view.

As we discussed in a previous article, the Tier 2 (General) visa route was replaced by the Skilled Worker route on 1 December 2020. Amongst other positive changes, the 10% shareholding limit restriction was abolished. How can a Tier 2 (General) visa holder take advantage of this change?

First, we must stress that the change in the rules does not remove the shareholding restriction from existing Tier 2 (General) visa holders. Failure to follow the restriction may amount to their visa being cancelled and have a detrimental impact on any future immigration application.

That being said, existing Tier 2 (General) visa holders can however apply for a visa to remain in the UK in the Skilled Worker route to increase their shareholding above the 10% threshold. We strongly advise this shareholding solution to be considered by UK businesses and invite you to contact our team for any business immigration and/or corporate advice on 01905 900919 or email patricia@bradleyhayneslaw.co.uk.

As a UK business, we hope this welcoming change will attract more business founders to the UK to invest and work here and, ultimately, stimulate economic growth and boost productivity, employment and wages through exchanges of skills, expertise and technology.