FLR (M) Savings and income combined

[David180]

Hi,

My wife will apply for FLR in Feburary 2017. She has just sold her property and we have 550,000RMB in China or about 65,000GBP based on the current value of the GBP.

I want to convert this RMB into GBP and transfer the money back to the UK. However, China only allows $50,000 dollars to be purchase by each individual. People in China normally pool family bank accounts together to purchase and transfer larger amounts of currency out of the country. This is what we wanted to do since if the GBP strengthens then we could end up having below the required £62500.

We would transfer half to her brothers account and half to her sister's account. We would then use their accounts online to purchase GBP37.500 each and then transfer both amounts as sterling to her UK Barclays account. This would take less than 5 minutes for each account. The funds should then be in her UK Barclays account within two hours. The money would only be in these two account for a very short length of time and only due to the fact that currency restrictions in China means we cannot do it from my one account. My wife has already used her quota for this year.

We can document the process and provide evidence of the transaction flows.

Do you think that this is could be acceptable?

Thank you for your help.

[Obie]

It may be possible, provided proper and detailed explanation is given.

Why can't you use the Chinese account now and apply.

You do not have to wait for 6 months, if she has had the property for longer than 6 months.

[David180]

Her current FLR visa does not expire until April 2017. We did not want to apply too early as she needs to be here for over 2 1/2 years.

We could provide all documentation and even a flow chart. I am just worried about the flexibility of the rules in this case. What is the interpretation of "under our control"? I think that a letter from the brother and sister as well as all bank documentation and a letter from a solicitor explaining the currency restrictions should be sufficient.

Due to the Chinese government restrictions there is really no other way to move more than $50,000 out of China per year.

[CR001]

Why not just leave the money in an account in her name in China. These statements can be used I am sure.

[Obie]

That is what i am thinking also. Foreign savings can be use, provided the bank is regulated by the authorities in the state where the money is held. Unless of course you are concerned by currency fluctuation.

[David180]

Yes. It is the currency fluctuations that I am worried about.

If we buy GBP now and transfer to the UK it will be £65k.

If we leave the CNY in the Chinese account who knows what it will be worth when we apply in February 2017. The rate would only need to move from GBP1 = 8.5 to GBP 1= 8.95 for the amount of RMB to be under the £62500 needed.

[David180]

I am the sole director of a Ltd company. My wife and I wish to combine savings as well as income to meet the financial requirements. She has been employed through PAYE since September 2016 and we hope to apply for the FLR (M) in February 2017.

I know that I cannot combine my income with savings since I am the director of the company with less than 5 shareholders and thus treated as self employed but can my wife combine her income paid via the company with savings? She has no connection to the directorship of the company in legal terms and is treated only as a PAYE employee.

I can provide her with all documentation needed.

Are there any restrictions because I am the director of the company that she is working for?

Thanks for any help!!!