T1 Extension Application Query --- Plz Help

This is on behalf of my friend.

I am on T1 Entrepreneur visa £200,000 route and my extension is due in next 15 months.
I have already bought 2 Grocery business and paid £100,000 as good will and i am running them
shops since i m on T1 visa. both shops are on rent. Now one landlord of said shops wants to sell his
property (shop) for £70,000.

My question is:
If i buy one shop for £70,000 where i am already running my business. and keep £30,000 cash in business
account to run my shops. Do i qualify for Extension?

In short:
£50,000 (1st shop Good Will)
£50,000 (second shop Good will)
£70,000 (1st shop Property, If i buy this)
£30,000 (Keep cash in bank to run daily business)

Will home office consider it as £200,000 investment ? Plzzz Help guyz..

Hi Musa
It would be my advice that you seek proper legal advice from a qualified immigration lawyer regards this.. the reason i say this is because i have read on a HO guidance pack that goodwill is not considered a form of investment. Please get clarification for yourself regards this first.

Salim

This is what i have read and i have understood it to mean that "GoodWill" payments do NOT count as genuine investment for Tier1 Entrepreneur Extension purposes.

Invested or spent by the applicant’s business excludes spending on all of the following

their own remuneration

buying the business from a previous owner, where the money ultimately goes to that previous owner (irrespective of whether it is received or held directly or indirectly by that previous owner) rather than into the business being purchased - this applies regardless of whether the money is channelled through the business en route to the previous owner, for example by means of the applicant or business purchasing ‘goodwill’ or other assets which were previously part of the business

investing in other businesses (other than those the migrant is running as self-employed or as a director)
any spending which is not directly for the purpose of establishing or running their own business or businesses

It may also be appropriate to test if the funds remain available to the applicant at other

Goodwill does count as investment

The problem with goodwill is the date you paid goodwill. I dont remember the date exactly(you can look for it)

So if you paid goodwill before that date it will ve counted. If you paid after that date then it wont be counted

The date this went in was April 2014

Quote by Simon Kenny

"Making an approved investment in a new business. The £200,000 “spent” must exclude any funds buying the business from a previous owner, where the money goes to that previous owner rather than newly into the business. That often makes a share sale an unsuitable way of showing the capital investment unless this constitutes new share capital in the company. It makes it difficult, for example, for a new entrepreneur to pay an owner’s valuation of the existing goodwill in a business unless a further £200,000 in addition to that is to be introduced;"

http://www.mooreblatch.com/news-media/b ... confusion/

Thank you AANA and 10020132

So that means if i buy a commercial property for my business that money will count as investment.

and the Goodwill i have already paid before April 2014 will be considered as investment but now if
i will pay any goodwill, it wont be consider as investment and new rules will apply to me

And please give some suggestion on my last point as well. If i keep some cash in bank account to run daily business,
will that money be counted towards £200,000 at extension stage?

Also please advice if i employ 4 peoples for last 6 months before extention will it full fill that requirment?

Kind Regards.