What happens if I invest my funds in a U.K. business and it is sold before the end of the investment period required for a Tier 1 Investor visa?

Tier 1 Investors are free to invest their funds into UK Government bonds and by way of share capital or loan capital in active and trading UK registered companies. However, it is important to note that Tier 1 Investors are precluded from investing in companies mainly engaged in property investment, management or development. Depending on the precise nature of the activities of a real estate company, there is a genuine risk that any such investment would not be permitted by the UK authorities. In such circumstances, it is wise to consider obtaining legal advice on the validity of the proposed investment. If the business in which the funds are invested is sold, an investor may need to take some action to ensure his investment continues to qualify. Much will depend on the terms of the sale and whether the investment was by way of share capital or loan capital. If you were to sell your shares as part of the deal then you are under an obligation to re-invest the gross proceeds into new qualifying investments and the Home Office have specific timelines for reinvesting. However, if you are retaining your shareholding or you have invested by way of loan capital then it may be that no action is required. Either way, you should seek legal advice to ensure that your investment remains compliant.