Investment route for T1E

Tier1Dependent · Post by **Tier1Dependent** » Mon Jun 08, 2020 10:26 am

Dear Gurus

My wife is a T1E visa-holder, and has opened a LLC.
I am the main investor (we had informed UKVI of this at time of Visa application), but not a shareholder or director in the business.

Her accountant has advised that the fund infusion into the business account should be recorded via share transfer (I become shareholder) or loan agreement (the business enters into a loan agreement with me).
We are leaning towards the loan option.

However, the accountant is not aware if there'd be a UKVI challenge should the business enter into loan agreement with me, as opposed to an agreement with the T1E main applicant i.e. my wife.

Could you kindly advise if there's any UKVI concern if I invest into the business directly ?

This query is also true if we go via the share transfer route. i.e. Is there any merit in routing the entire fund transfer via my wife's personal account (with her remaining sole shareholder), as opposed to directly transferring from my account to the business account (and me becoming part shareholder)?

Thanks in advance

marcnath · Post by **marcnath** » Mon Jun 08, 2020 10:46 am

Tier1Dependent wrote: ↑
Mon Jun 08, 2020 10:26 am
Dear Gurus

My wife is a T1E visa-holder, and has opened a LLC.
I am the main investor (we had informed UKVI of this at time of Visa application), but not a shareholder or director in the business.

Her accountant has advised that the fund infusion into the business account should be recorded via share transfer (I become shareholder) or loan agreement (the business enters into a loan agreement with me).
We are leaning towards the loan option.

However, the accountant is not aware if there'd be a UKVI challenge should the business enter into loan agreement with me, as opposed to an agreement with the T1E main applicant i.e. my wife.

Could you kindly advise if there's any UKVI concern if I invest into the business directly ?

This query is also true if we go via the share transfer route. i.e. Is there any merit in routing the entire fund transfer via my wife's personal account (with her remaining sole shareholder), as opposed to directly transferring from my account to the business account (and me becoming part shareholder)?

Thanks in advance

The Tier1E requires that the Visa holder is the one that makes the investment.

At the application time, you would have provided documents showing yourself as a third part fund provider and made the commitment to provide those funds to your wife.

Any investment to the company, whether by loan or share, has to be in your wife's name, not yours. The extension will be refused if either of that is your name.

If investing by loan, the money has to be transferred from your wife's personal account to the business account, not from yours.

Tier1Dependent · Post by **Tier1Dependent** » Mon Jun 08, 2020 1:31 pm

Thank you. Clear

Considering my wife is the sole director and shareholder, is there any point of a loan agreement between her and the business? It sounds like this could then be managed by simply issuing additional shares at a premium, considering no change in ownership.

Also, are there any potential tax implications of a spousal money transfer ?

Lastly, I had already transferred some money to the business directly from my account.
Would it create complications if this money is returned back , and I then reroute it to the business via my wife, as suggested?

Thanks in advance

marcnath · Post by **marcnath** » Mon Jun 08, 2020 3:41 pm

Tier1Dependent wrote: ↑
Mon Jun 08, 2020 1:31 pm
Thank you. Clear

Considering my wife is the sole director and shareholder, is there any point of a loan agreement between her and the business? It sounds like this could then be managed by simply issuing additional shares at a premium, considering no change in ownership.

Also, are there any potential tax implications of a spousal money transfer ?

Lastly, I had already transferred some money to the business directly from my account.
Would it create complications if this money is returned back , and I then reroute it to the business via my wife, as suggested?

Thanks in advance

You need to first decide whether you want to show the investment as shares or Director's loan. Don't overthink it - look at the documentation requirements for each and make up your mind.

To me, I don't understand why anyone does Director's loans, which has more documentation requirements.

Regarding tax implications, if you have to ask that, then is not an easy one to answer. I have personally never considered that and I can't imagine what would be need to but I guess there are always circumstances where it becomes an issue. Talk to a tax adviser.

Again, if you are doing share capital investment, it really does not matter. Even as a Director loan returning and depositing the money again would not normally matter, assuming you do the returning before you make the investment.

Tier1Dependent · Post by **Tier1Dependent** » Mon Jun 08, 2020 4:22 pm

Thank you very much.

Best Regards

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