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As ever, money talks. The UK government may be trying to curb overall levels of immigration into the country, but for those with the cash the doors are opening wider.

At the tail end of 2010 the government’s Home Secretary announced new limits on various components of its points-based immigration system, making it harder for non-EU citizens to enter the country. The changes will take effect from April 2011.

However, it also emerged the Tier 1 Investor and Entrepreneur categories would be made more attractive to applicants. In addition, a new Tier 1 category, Persons of Exceptional Talent, will be introduced for internationally recognised people.  

No details of the changes to the Investor category were released at the time of the announcement. However, it appears one aspect will be to reduce the time it takes for a qualifying person to be granted residency.

Investor criteria

The Investors category is designed for those who intend to make a substantial investment in the UK[1]. To be eligible, applicants need:

a)      A minimum of £1 million of your own money in a regulated financial institution that you can dispose of in the United Kingdom, or

b)      Personal assets of more than £2 million, and a £1 million loan from a financial institution regulated by the Financial Services Authority.

Successful applicants receive a three year visa initially, which can be extended for a further two years. Partners and dependent children are also covered by the visa, and are free to work/attend school. After five years visa holders can then apply for permanent residency.

Residency fast-track

Under the upcoming changes, though, it appears there will be a new fast track to residency for the wealthiest. The qualifying periods look like being:

  • 5 years for those investing £1m-£5m
  • 3 years when investing £5m-£10m
  • 2 years when the investment is £10+m

 

When you’re rich, the world really is your oyster.


[1] See the UK Border Agency website for more details, http://www.ukba.homeoffice.gov.uk/workingintheuk/tier1/investor/

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So you’re moving abroad. You are filled with excitement about the prospects it offers, eager to see new places, meet new friends, pursue your dreams.

But what about the loved ones you leave behind? While you have a wealth of new opportunities and experiences to explore, all they will be left with are the memories of your lives together.

Transition Tips

No doubt they will feel your loss. Nevertheless, there are a few things you can do to make the process as painless as possible:

  1. Once you have decided to move, share it with your family and friends well in advance. It may take time for them to accept you are leaving, and some may try to discourage you. However, a calm approach will help. Tell them your reasons for moving, and explain the advantages you hope to achieve as a result.
  2. The days before you leave are bound to be hectic. You will get caught up in a whirlwind of shopping, packing, finalising insurance and visa arrangements, getting health checkups and a host of last minute details. As a result, you may not realise how quickly the days are flying. So don’t forget to spend quality time with your loved ones, especially your family, before you go.
  3. Try to maintain a cheerful environment while you are still at home. Avoid emotional discussions, and reminders that soon you won’t be there.
  4. The period after you leave home can be tough for both you and your family. Sudden bouts of loneliness may make you feel homesick, and leave them feeling sad at your absence and anxious for your safety. At these times you have to be the strong one, since it was your decision to move. So the moment you arrive, call to let your family know you are well.
  5. Once you reach your destination, keep yourself occupied. Get involved in your new life and location by settling into your new home, learn about your new environment, and start making friends.
  6. During your first few months in the country keep in touch with family and friends as often as you can, making sure you share with them all the details about the place and its people. The pleasure and relief on both sides from hearing each other’s voices is priceless. And because international calling is so cheap these days the cost is no longer a worry.
  7. You can stay connected too by writing emails to friends and family explaining what you did today, or by sending pictures of where you are.
  8. And for those friends and family back home who are not well-versed with the internet, why not write them a letter or send a postcard? It is sure to make their day.

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Alan Howard, founder of leading hedge fund Brevan Howard Asset Management, has joined the expat ranks.

Recent reports say Howard, who is swapping London for Geneva, is among a number of financial luminaries to have left the UK. And there are fears many more will follow, driven by concerns about rising tax rates, a less attractive business environment, and quality of life issues.

Certainly Geneva has its attractions. Low tax is an obvious one, especially for those wealthy City types. For example, alternative investment managers (i.e. those at hedge and private equity funds) can obtain a special tax status that enables them to discount chunks of their taxable income. Indeed, Switzerland as a whole offers many tax advantages.

Then there are the lifestyle benefits – the proximity of world-class ski resorts, sailing on the country’s many lakes, the beautiful scenery, its excellent environmental record, high quality health and education systems, etc, etc.

And that is backed up by Mercer’s 2010 Quality of Living survey, which put Geneva third in its global rankings, one place behind Zurich[1].

The flipside is that Geneva also ranks as one of the most expensive cities in the world, coming in fifth in Mercer’s recently released Cost of Living survey[2].

With a reported fortune of £875 million that won’t faze Alan Howard. Still, it might give the rest of us pause for thought.


[1] Mercer 2010 Quality of Living survey, 26 May 2010 http://www.mercer.com/qualityofliving

[2] Mercer Worldwide Cost of Living survey 2010 – City rankings, 29 June 2010, http://www.mercer.com/costoflivingpr#City_rankings

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