Secondly, if the affected investors do not meet the above deadlines, they can still apply for further extensions and settlement if they invest at least £2 million in qualifying investments before they apply for further extensions and maintain the investments for a fresh full qualifying period required for settlement.

These changes mean that the relevant Tier 1 Investors do not need to change their investment strategy straight away. They should however do so before the deadlines the Home Office has imposed if they want to avoid setting the time they have accrued towards settlement back to zero.

When reinvesting, the investors need to make sure that the funds they previously invested in UK Government bonds are moved into qualifying share capital or loan capital investments in active and trading UK registered companies. Certain investments do not qualify, such as investments in property investment, property management or property development companies, or pooled investment vehicles unless they are funded by a UK or devolved government department or agency. The gross proceeds from the sale of the bonds must also be re-invested in qualifying investments before the end of the investor’s next reporting period, or within 6 months of the sale, whichever is earlier.