To meet the financial requirement under Appendix FM of the Immigration rules, you will need to have an annual income of atleast £18,600. This amount will increase if there are dependent children.
Cash savings over the amount of £16,000 can count towards meeting the financial requirement. £16,000 is the level of savings at which a person generally ceases to be eligible for income-related benefits.
How is cash savings calculated?
When calculating cash savings, the following formula (at the entry clearance/initial leave to remain and further leave to remain stage) must be used:
Amount of cash savings – £16000 ÷ 2.5 (grant of period of leave i.e visa of 2.5 years) = must be equal to at least £18,600
If there is no income from employment or any other source, the amount of cash savings required is £62,500 (£62500 – £16000/2.5 =£18,600).
If the amount of cash savings is £33,000 (£33000- £16000/2.5 = £6,800), income of at least £11,800 will be required from another source to meet £18,600 (£6,800 + £11,800).
If the amount of cash savings is £17,500 (£17500- £16000/2.5=£600), income of at least £18000 will be required from another source to meet £18600 (£600 + £18000).
If the amount of cash savings is £25,000 (£25000- £16000/2.5 = £3600), income of at least £15000 will be required from another source to meet £18600 (£3600 + £15000).
Additional amount will be required for each dependant child who is not a British Citizen or settled in the UK. The required amount will increase by £3,800 for the first child and £2400 for each additional child.
Who can hold the cash savings?
The savings must be held in cash in a personal or savings bank account by the applicant or their partner or jointly. The account can be a current, deposit or investment account, provided by a financial institution regulated by the appropriate regulatory body in the UK or abroad. The savings must be available to be withdrawn immediately (with or without a penalty).
The savings can be from any legal source including a gift from a family member or a third party but cannot be borrowed. A declaration by the applicant or their partner will need to be provided confirming the funds are under their control along with evidence that the funds have been held for a minimum period of six months prior to the date of the application.
Can funds from sale of property count towards meeting the requirement?
Funds held as cash savings can be from the proceeds of the sale of a property provided the property was owned by the applicant, their partner or jointly at the beginning of the 6-month period prior to the date of the application.
The funds must be the net proceeds of the sale (e.g after repayment of any loan or mortgage and payment of any taxes or professional fees). Evidence to prove ownership, confirmation of the sale price and confirmation of payment of any mortgage, loan, taxes or other professional fees will be required.
Can money held in an ISA or pension savings account be relied upon for meeting the requirement?
Cash savings held in a pension savings account which can be immediately withdrawn can be used to meet the requirement.
A stock and shares ISA account meets the definition of a savings account and can be relied upon, provided the savings can be immediately withdrawn.
Cash savings that has been transferred from investments including funds liquidated from a pension pot, stocks, shares, bonds or trust funds can be relied upon, provided the funds have been under the control of the applicant, their partner or jointly throughout the 6-month period prior to the date of the application. Evidence in the form of a portfolio report and bank statements will be required to prove ownership of the funds, cash value of the funds (throughout the 6-month period)and transfer of the funds into cash.
Can Cash savings be combined with income from other sources?
Cash savings can be combined with income from salaried and non-salaried employment (in most cases), non-employment income and pension income. Cash savings, however, cannot be combined with self-employment income or income from employment as director or employee of a specified limited company.
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