Excess Cash

[Ali272]

Hi,

I am running a technology company which is not that capital intensive. I have significant amount of cash sitting in the bank earning absolutely nothing. I was wondering whether I can use that cash to buy foreign stocks (Canada and US) and sell them according to my business needs overtime. This of course will happen all in the company's brokerage account name.

kind regards

[zimba]

Hi,

I am running a technology company which is not that capital intensive. I have significant amount of cash sitting in the bank earning absolutely nothing. I was wondering whether I can use that cash to buy foreign stocks (Canada and US) and sell them according to my business needs overtime. This of course will happen all in the company's brokerage account name.

kind regards

According to the rules, any money spent on anything that is not directly related to the running of your business is not accepted

[Ali272]

Hi Zimba,

I understand but i don't want to just buy stocks and that't it. I want to invest the excess cash while I have no use for it. Overtime I will sell the stocks and pay for normal business expenses. Just like many other businesses who invest their excess cash in treasuries. (I intend to spend the full amount in my business overtime.)

[zimba]

Hi Zimba,

I understand but i don't want to just buy stocks and that't it. I want to invest the excess cash while I have no use for it. Overtime I will sell the stocks and pay for normal business expenses. Just like many other businesses who invest their excess cash in treasuries. (I intend to spend the full amount in my business overtime.)

You have been given a visa based on the assumption that the money in your disposal is intended to be used only towards the running of your business and not for investment purposes. I suggest you stay away from such practices and avoid the risks

[noajthan]

Hi,

I am running a technology company which is not that capital intensive. I have significant amount of cash sitting in the bank earning absolutely nothing. I was wondering whether I can use that cash to buy foreign stocks (Canada and US) and sell them according to my business needs overtime. This of course will happen all in the company's brokerage account name.

kind regards

The value of investments (and any income received from them) can fall as well as rise and you may not get back what you invested. Overseas investments will also be subject to exchange rate fluctuations as well as the usual market vagaries.
So its unclear how you would meet the UK-specific visa investment criteria by indulging in such foreign speculation.

Furthermore, such investments would ordinarily be considered as a medium to long-term commitment, meaning being prepared to hold them for at least five years; such a timescale is not compatible with your visa timeline.

[Ali272]

Sorry guys. I understand. Thank you so much.

Just wanted to squeeze every single pound out of my capital just like normal businesses do. Will not pursue this strategy now.

Thanks again.

[noajthan]

Sorry guys. I understand. Thank you so much.

Just wanted to squeeze every single pound out of my capital just like normal businesses do. Will not pursue this strategy now.

Thanks again.

You're not a normal businessman, you're on a T1E visa.

No harm in asking. But you can easily violate the terms of this visa and fail in the extension (many do just that).

Try 'investing' in UK plc. That's the purpose of the visa.

[Ali272]

I understand noajthan.
I am on Tier 1GE at the moment and was chosen from more than 60 people. Just wanted to make a little bit of more money but investing company's unused cash.
Please do not judge me. I am investing in my business. already have spent more than 20% of my equity and not even 9 months into my visa.

Can I ask what are the common ways people violate the terms of this visa? As I understand you have to spend the full 50k in the first 3 years, employ two people for minimum of 30 hours a week for at least 12 months each and don't work for anybody else. Is there anything else?

[noajthan]

I understand noajthan.
I am on Tier 1GE at the moment and was chosen from more than 60 people. Just wanted to make a little bit of more money but investing company's unused cash.
Please do not judge me. I am investing in my business. already have spent more than 20% of my equity and not even 9 months into my visa.

Can I ask what are the common ways people violate the terms of this visa? As I understand you have to spend the full 50k in the first 3 years, employ two people for minimum of 30 hours a week for at least 12 months each and don't work for anybody else. Is there anything else?

I mean you cannot operate as a normal business/man as you need to fulfill the visa terms. The two are not necessarily mutually compatible.

As well as problems with any/all of those requirements you have listed, you will find, for example, a multitude of tax-related issues if you dig into the forum.