Director's loan: 200k invested or spent?

[yoshinoya]

Hi,

After reading numerous threads about the '£200k invested' criterion at Tier 1 (E) extension stage, I feel the need to clarify this criterion. See Immigration Rules part 6A. 245DD. k(ii):

'the applicant has genuinely invested the money referred to in Table 5 of Appendix A into one or more genuine businesses in the UK to be spent for the purpose of that business or businesses'

https://www.gov.uk/guidance/immigration ... sed-system

The above rule states 'invested...to be spent...'. My understanding of the English language is that 'to be spent' is not the same as 'spent' -- your company does not need to have spent the whole £200k by Year 3 following director's loan (unsecured and subordinated to third parties). Please correct me if I'm wrong.

But again, in the policy guidance, there is:
'Money deposited in a bank account, even if it is in a United Kingdom business bank account, is not counted as investment in business.'

This confuses me a lot, as the immigration rule and policy guidance contradict each other.

Anyone please shed some light on this. Particularly anyone who got visa extension with £200k invested but not fully spent?

[zimba]

I got an extension without spending the total sum. You need to show you invested the money and intend to spend it in the business, showing that you are in fact paying the business expenses, bills, fees, employees ..etc. Simply keeping the total sum of money in a bank account will not count as investment as you are not doing any business with it

[n8net]

I had the same confusion as well.

but clearly, the immigration rules has precedence over guidance, as such as long as you invested the money and operating a genuine business will suffice.

this is consistent with some of the successful applications, there is even one with not much of the original 200k not spent as the expenses were taken out from the revenue of the business.

but, if you have any form of showing that you intend to spent the remainder of the money, I would do that. I hv extension coming up in a week, and majority of my investment happened only in last few months and I am planning to show how I intend to spent the rest.

thanks

[yoshinoya]

Thank you both for clarifying the matter. Please n8net also share your result once you get the extension. Much appreciated!