Partner & Family Visa Financial Requirement: Non-Employment Income
Following previous posts in the Knowledge Centre about meeting the financial requirement of Appendix FM of the Immigration Rules through cash savings, self-employment, variable income and third-party support, this post will focus on meeting the income requirement through non-employment income – such as property rental income, income from dividends, and maintenance payments.
This post may be of particular interest to those applicants who plan to combine sources of income in order to meet the financial requirement; Appendix FM allows non-employment income to be combined with income from salaried and non-salaried employment, cash savings, and pension income.
The Immigration Rules set out the general financial requirement of a gross annual income of at least £29,000. There is no longer a separate child element to the minimum income requirement.
Category C – What Counts as Non-employment Income?
The following sources of non-employment income are listed within the current Home Office Guidance.
- Property rental income;
- Dividends or other income from investments, stocks and shares, bonds or trust funds (A director/employee of a limited company in the UK can count this income under Category C unless it is a specified limited company, which will be considered under Category F/Category G);
- Interest from savings (This requires personal bank statements from the Applicant/the Applicant’s partner/their joint account for th 12 month period showing interest paid into their account);
- Maintenance payments from a former partner of the applicant in relation to the
applicant or any children of the applicant and their former partner (any documents issued by the family court must have permission to be disclosed). Also, maintenance payments from a former partner of the applicant’s partner in relation to that partner (You will need to provide evidence of a court order, written voluntary agreement or Child Support Agency documentation); - UK Maternity Allowance, Bereavement Allowance, Bereavement Payment and Widowed Parent’s Allowance;
- Payments under the War Pensions Scheme, the Armed Forces Compensation Scheme and the Armed Forces Attributable Benefits Scheme (Provided that they are not considered as pension income under Category E);
- A maintenance grant or stipend (not a loan) associated with undergraduate
study or postgraduate study or research ( The Applicant must currently be in receipt of the grant or stipend or will be within 3 months of the date of application, and the grant or stipend must be payable for a period of at least 12 months, or for at least one full academic year, from the date of application or from the date on which payment of the grant or stipend will commence.); - Ongoing insurance payments;
- Ongoing payments from a structured legal settlement;
- Ongoing royalty payments (These will need to be accompanied by a letter from a solicitor/accountant/business manager setting out the contractual/other basis on which the royalty income is received and the frequency of such payments. It should confirm the royalties will continue for at least 12 months following the date of application).
What Is the Time Period Over Which I Can Rely on Non-employment Income?
Non-employment income ordinarily will only be considered if it was received by the Applicant or the Applicant’s partner in the 12 month period prior to the date of application.
Does the Source of Non-employment Income Need to Be in My Name?
The source of income or relevant asset must be in the name of the Applicant, the Applicant’s partner or held/owned jointly at the date of application. Please note, this does not mean that the asset/source of income needs to be in the Applicant’s or their partner’s name for the full 12 month period to meet the requirement, however it will only be considered for the period for which the asset was owned/income was received. For example, if rental income was transferred to the Applicant’s name 4 months prior to the date of application, previously held by the Applicant’s parents, then only those relevant 4 months will be considered.
As with other permitted sources of income, it is the gross income that will be considered in meeting the financial requirement of Appendix FM. Contrastingly, with respect to income from dividends it is the net income that will be considered. Bank statements showing the receipt of net payment (or gross payment with evidence of tax paid) will need to be provided, where applicable. If those bank statements show only a proportion of post-tax income, only the amount shown on the bank statements will be considered.
Property Rental Income
One of the most common forms of non-employment income is from rental income, which may be from the UK or overseas property. The requirements include that the property is owned by the Applicant/the Applicant’s partner, is not their main residence, and if ownership of the property is shared with a third party then only the income received from their share can be counted as income.
Any management fee for the property, that is discounted from the gross income, may be counted for the purpose of meeting the financial requirement. Equity in a property cannot be used to meet the financial requirement.
Where the Applicant and their partner are returning to the UK from abroad, rental income from a property in the UK which will become their main residence can be combined with the applicant’s partner’s overseas employment income. It cannot be combined with the income from the Applicant’s partner’s job offer in the UK as the couple’s home in the UK will no longer be a source of income once the couple have returned.
To rely on rental income you will need to provide evidence of ownership of the property in the form of a copy of the title deeds of the property or the title register, a mortgage statement (if applicable), a rental/tenancy agreement and personal bank statement for the 12 month period prior to the date of application. This should show the rental income relied upon being paid into the account of the Applicant/the Applicant’s partner.
Dividends and Investments
Income earned from investments, shares or stocks in the 12 months prior to the date of application, will be considered if it is still held at the date of application. If dividends are received from a specified limited company, then they cannot be counted under non-employment income under Category C, but under Category F/G (see above).
To rely on investments, stocks, shares, bonds or trust funds you will need to show evidence of a certificate showing proof of ownership and evidence of the amount of any investment, including a a portfolio report (for a financial institution regulated by the Financial Conduct Authority in addition to personal bank statements for the12-month period prior to the date of application.
Maintenance Grants
An academic maintenance grant or stipend, paid on a tax-free basis, may be counted towards the financial requirement. The person must be currently in receipt of the grant or stipend or will be within 3 months of the date of application, and the grant or stipend must be payable for a period of at least 12 months, for at least one full academic year, from the date of application or from the date on which payment of the grant or stipend will commence. You will need to provide documents from the body/company awarding the grant/stipend confirming that the person is currently in receipt of the grant.stipend or will be within 3 months of the date of application and it will be paid for a period of at least 12 months or at least one full academic year from the date of application of the date on which payment of the grant/stipend will commence.
Contact Our Immigration Barristers
For more information on the financial requirement under the Immigration Rules, or to discuss an application under Appendix FM of the Immigration Rules then please contact our specialist immigration barristers on 0203 617 9173 or via the enquiry form below.
