Settlement Visa For Uk - New Financial Requirement & Rental Income

[crazydrummerpauly]

Hello all. Many have been shocked and thrown into confusion by the new rules which came into force last Summer, 2012, regarding the acquiring of a UK Settlement Visa for a wife or long-term unmarried partner. Centrally, the minimum Income requirement of £18,600, which places the UK as second in the world in terms of financial hurdles (Norway being No.1), has rocked many Sponsors back on their heels. I have been in communication with the UK Border Agency about one specific aspect of this financial requirement which might help other people. It concerns the possible income which an ex-pat might be getting from their property being let out while they are in Thailand, or any other foreign country for that matter.

The background to this potentially good news, is the fact that the UK government has stated categorically that it will NOT be engaging in any examination of any applicant's precise financial position - in other words, it will not be doing any kind of 'Means Testing' to see how a person's income against outgoings leave them at the end of every month. This has led to bitter complaints that person A, with an income of £20,000 a year but a mortgage of £10,000 and a previous marriage with children costing another £5,000 a year in support payments; would be worse off than person B with just £10,000 a year income but no debts or commitments at all. British MPs are being inundated with angry letters from their constituents with this theme and others detailing the 'crude' nature of the new rules. One other criticism has been around the fact that whatever it takes to live in London or the South-East of the UK, it is way more than it takes to live in the North of the country. However, this post brings news of a strange possible benefit which could flow from this crude approach.

I put to the UK Border Agency this hypothetical case : A British citizen has been living abroad for a while, and they have let out their UK property whilst they are in Thailand. If they return to the UK with a Thai (or other foreign) partner/wife, but they do NOT go to live in the Brit's own let property, but instead take on a rented property elsewhere, would the Rental Income from their own UK property be eligible to count as part of the £18,600 minimum income requirement under the new rules ? More concretely, if the let property brings in £1,000 a month, and the new rented accommodation costs the same, £1,000 a month, would the £1,000 a month coming IN still be counted as qualifying income, even though in practical terms, it is as it were, being Cancelled out by the £1,000 going OUT for renting the other property. The answer to this - and i have it in an email - is YES. On the face of it, this is bizarre - but they have to agree to it because they have set up the rule which precludes them examining anyone's INs and OUTs in a means-testing manner. Their statement that means-testing would not be entertained, was presumably to save the civil service getting bogged down in the detailed work which means-testing would demand. Bearing in mind how high Rents are in many parts of the UK, this weird rule could really help some applicants in pushing their overall income up to that £18,600 mark. I hope this news will help some people.

[hotwinter]

i think this is just more proof of how stupid the new rules are

[crazydrummerpauly]

i think this is just more proof of how stupid the new rules are

Yep - in more ways than one ! It's just that in this case of stupidity, it will actually work in some applicants' favour. Another cranky things about the new rules which i forgot to mention, was how far above the government's own Minimum Wage the £18,600 per annum is. As the min. wage is now at £6.19 an hour for over-21s, that equates to about £12,400 per annum, which is only 2/3 of the £18,600. But i imagine the government would answer this by saying that people on the minimum wage would be eligible for some state benefits (i don't know for sure), and they wanted to set the new visa-qualifying minimum at a figure which meant that there would be no state benefit whatsoever that a Sponsor and their foreign partner could apply for.

[7by7]

That is their thinking; yes.

Instead of following the old, unofficial, guidance and setting the minimum income figure at the level of income support a UK family of the same size would receive: they set it at the level at which a UK family of the same size would not be eligible for any state benefits.

So they expect a UK family to be able to survive on an income approximately £6000 p.a. less than the minimum they insist an immigrant family to have.

The argument that a UK family on income support, or an income below £18,600, would be entitled to housing benefit etc. is easily countered by saying that an immigrant family can, and many do, live with family in the UK until they are financially able to obtain their own housing; which is what we did.

Also, if they had not abolished third party support then this, too, would have helped immigrant families until they could support themselves.

BTW, by 'immigrant families' I mean any family where at least one partner is an immigrant, which includes, of course, families where one is an immigrant and the other a British citizen.

[Tony M]

Hopefully you will all be putting this in your online submissions for the upcoming review ? My earlier post refers :

[crazydrummerpauly]

Hopefully you will all be putting this in your online submissions for the upcoming review ? My earlier post refers :

Extremely interesting links - thanks! Assuming the all-party inquiry did come up with proposals for reform of the new rules, i wonder how long it would be before any changes to the legislation might happen ? Given how packed every parliament's timetable is, i can imagine such changes being kicked into the long grass for a long time...

[TommoPhysicist]

Can you use child benefit and child tax credits towards the income .........

I'm thinking English Husband, English child, Thai wife.

As you would be entitled to those as not considered benefits

[Tony M]

Can you use child benefit and child tax credits towards the income .........

I'm thinking English Husband, English child, Thai wife.

As you would be entitled to those as not considered benefits

The answer is no. This is the rule :

21. When calculating income under paragraphs 13 to 16, the following sources will not be counted:

(a) Loans and credit facilities.

(b ) Income-related benefits: Income Support, income-related Employment and Support Allowance, Pension Credit, Housing Benefit, Council Tax Benefit and income-based Jobseeker's Allowance.

(c ) The following contributory benefits: contribution-based Jobseeker's Allowance, contribution-based Employment and Support Allowance and Incapacity Benefit.

(d) Child Benefit.

(e) Working Tax Credit.

(f) Child Tax Credit.

(g) Any other source of income not specified in this appendix.

Edited January 7, 2013 by Tony M

[crazydrummerpauly]

Can you use child benefit and child tax credits towards the income .........

I'm thinking English Husband, English child, Thai wife.

As you would be entitled to those as not considered benefits

Hi - the main document concerned with what is and what is not allowable income is lengthy and complicated, but here is what i think is the section dealing with your query - not good news as far as i can see --->

"5.4.4. Income from the following sources will NOT be counted towards the financial requirement:

Any subsidy or promised financial support from a third party (other than maintenance payments from a former partner in relation to the applicant and former partner’s child or children dependent on and cared for by the applicant).

Income from others who live in the same household (except any dependent child of the applicant who has turned 18 and continues to be counted towards the higher income threshold the applicant has to meet until they qualify for settlement on the 5-year family route).

Loans and credit facilities.

Income-related benefits: Income Support, income-related Employment and Support Allowance, Pension Credit, Housing Benefit, Council Tax Benefit and income-based Jobseeker’s Allowance.

The following contributory benefits: contribution-based Jobseeker’s Allowance, contribution-based Employment and Support Allowance and Incapacity Benefit.

Child Benefit.

Working Tax Credit.

Child Tax Credit."

This is full title of the document which can be downloaded as a pdf from the Border Agency website --->

"IMMIGRATION DIRECTORATE INSTRUCTIONS

FAMILY MEMBERS UNDER APPENDIX FM OF THE IMMIGRATION RULES

Annex FM Section FM 1.7

FINANCIAL REQUIREMENT"

(Tony M - somehow i managed to miss your reply before adding mine - had a senior moment i guess ! ;-)

Edited January 7, 2013 by crazydrummerpauly