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UK_Lawyer
UK_Lawyer, Solicitor
Category: Law
Satisfied Customers: 2458
Experience:  I am a qualified solicitor and an expert in UK law.
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I want to know whether my savings will meet the UK Financial

Resolved Question:

I want to know whether my savings will meet the UK Financial Requirement as set out in the document FM 1.7 - I need £62,500 in "Cash Savings" in order to be able to bring my Filipina wife back to the UK with me.
I have £20,000 in premium bonds and I have £45,000 in a capped drawdown SIPP which I am in the process of converting to a flexible drawdown SIPP in order that I can withdraw the full amount in cash if I need to.
My questions are:
1) Do I have to convert my premium bonds to cash and transfer the proceeds to a bank account or will they qualify as "Cash Savings" as they are. If I do have to transfer them to a bank account do I need to wait six months before applying for the VISA?
2) Do I have to convert my SIPP to cash and transfer the proceeds to a bank account or will it qualify as "Cash Savings" as it is. If I do have to transfer it to a bank account do I need to wait six months before applying for the VISA?
3) Will the gross (income) amount of £45,000 in the SIPP count as my "Cash Savings" or will I only be able to count the net (income) amount after tax - estimated at £35,000?
I think the FM 1.7 document refers to a US 401K style pension which I assume is similar to a UK SIPP as being ok but it makes no mention of Premium Bonds etc.
Obviously I'd rather leave my "investments" intact so any further information you can provide to help me do this would be appreciated.
Submitted: 2 years ago.
Category: Law
Expert:  Nicola-mod replied 2 years ago.
Hello,
I've been working hard to find a Professional to assist you with your question, but sometimes finding the right Professional can take a little longer than expected.
I wonder whether you're ok with continuing to wait for an answer. If you are, please let me know and I will continue my search. If not, feel free to let me know and I will cancel this question for you.
Thank you!
Nicola
Customer: replied 2 years ago.

Hello,

I'm happy to wait a little longer - say another couple of days?

Thanks,

John

Expert:  UK_Lawyer replied 2 years ago.
Hi, thank you for your question, I will be happy to help you today.
1. Yes you would need to convert your premium bonds to cash and then transfer the proceeds to a bank account. Once they have been converted into cash you would then need to wait 6 months before applying for your wife to the UK.
2. Yes, the requirements are same as above.
3. Unfortunately your income cannot be counted towards the visa application, unless the money is physically in the account for 6 whole months. ( if you would like further clarification on this I would be happy to assist you).
I hope this answers your question if however you feel that the answer does not cover all the points raised in your question please do not hesitate to ask further questions until you are satisfied with my answer.
Kind regards
Customer: replied 2 years ago.

Thanks for your answer - I understand I will have to convert the Premium Bonds to a normal bank account but what I don't understand is according to FM 1.7 paragraph 7.2.4 :

For example, in the UK a „stocks and shares‟ Individual Savings Account (ISA) does meet the definition of a savings account and the funds can be considered as cash savings if all the requirements above are met. Likewise, a pension savings account from which savings can be immediately withdrawn (like the 401K in the US).

Why is it that a SIPP that is immediately available for withdrawal and meeting the other requirements (List 1 to 11 Held in a bank or building society etc...) set out in FM 1.7 would not be regarded as Cash Savings?

Is there another document or do you have a reference of some kind that I can refer to?

I shall face a heavy tax penalty for converting the SIPP funds to cash :(

Expert:  UK_Lawyer replied 2 years ago.
Thank you for your reply, I apologise for the delay in reverting back to you.
In respect of the SIPP, what I would suggest is that you obtain a letter from your SIPP provider, confirming that you are able to withdraw the money available to you at any time. They should also state in the letter that should you wish the SIPP can be converted in to cash at your request but you would inquire a tax penalty. The letter should make it clear that the money can be immediately withdrawn.
This would be the best way to ensure that the home office understand that the SIPP is much like the ISA.
I hope this clarifies the matter.
Kind regards
UK_Lawyer, Solicitor
Category: Law
Satisfied Customers: 2458
Experience: I am a qualified solicitor and an expert in UK law.
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