URGENT HELP NEEDED - Investment Question

[teddybear79]

I was granted T1 200K on 25 Feb 2014.

Clarrification on rules came in April 2014 that if you buy an existing business, money going to previous owners will not count towards investment.

I purchased an existing business and paid previous owners x amount in semtember 2014.

If my investment counted as when I was granted visa there was no such clarification , if it is counted any references from homeoffice

Regards,

[cappachino]

[quote="teddybear79"]I was granted T1 200K on 25 Feb 2014.

Clarrification on rules came in April 2014 that if you buy an existing business, money going to previous owners will not count towards investment.

I purchased an existing business and paid previous owners x amount in semtember 2014.

If my investment counted as when I was granted visa there was no such clarification , if it is counted any references from homeoffice

Regards,[/quote

Not an expert but I believe u r bound by the rules u applied under
by the way was it a franchise
what type of business did u purchase
did u pay him for the stock or goodwill

[teddybear79]

I am going back home no use living and dying for 3 years

This is getting complicated, We are in a ship which can sink any time.

What if you invest 200k and at the 3rd year you are kicked ? how will you liquidate your investment ? we all know selling a business in the UK takes ages and what happends to our business and capital when we are out of UK (after 3 years)

[cappachino]

I am going back home no use living and dying for 3 years

This is getting complicated, We are in a ship which can sink any time.

What if you invest 200k and at the 3rd year you are kicked ? how will you liquidate your investment ? we all know selling a business in the UK takes ages and what happends to our business and capital when we are out of UK (after 3 years)

Looks like u r homesick

[teddybear79]

No my family is with me.

I am thinking logical

their is no assurance that they will extend your visa, its a big risk

[babez82]

Hi teddybear79

I hope you get the visa extension , please can you share your experience

Many thanks

[khandrakhan]

How about Ask accountant to transfer over 100% of shares from previous owner to you and report to companies house. May be claim investment as share capital? Will that work?

[dnf]

There is no simple answer to it but I will try and explain this to you from an accountants point of view:

1. Bought business for £200k

On your company accounts, £200k will show as assets, which may be the mixture intangible asset (lease premium/goodwill etc) and tangible assets (furniture and fixtures/equipment etc). The other side of the transaction will either show director loan or capital (depending how your accountant has advised you)

2. Home Office point of view

If the other side is shown under director loan than you may have an issue showing the transactions i.e. money transferred from you personally to the business, unless this was done and the company paid the previous owner. If this was not done and it is shown under director loan than I would suggest that you speak to your accountant and ask him to issue share capital and convert the loan to share capital. This way, your accountant can provide you with the share certificate which would suffice the requirement.

3. Visa extension

The requirement is to show that you have invested £200k in the business. By converting loan to share capital and having a share certificate would suffice the requirement.

My suggestion - don't leave till you are refused and I have a strong feeling that if you do the above than your visa extension will be approved.