The UK Spouse Visa financial requirement can be met from pension income, whether from a State pension, an occupational pension or a private pension. This income category is known as Category E, and it counts the gross annual pension the sponsor or applicant receives. Appendix FM-SE of the Immigration Rules sets the rules for Category E, and the income must add up to a gross annual £29,000, or the application may be refused. This post provides an overview of how Category E pension income is calculated and evidenced for a UK Spouse or Partner Visa.
Key overviews
- Category E covers pension income received by the sponsor or the applicant. The pension can be a UK or foreign State pension, an occupational pension or a private pension.
- The pension must have been paying out for at least 28 days before the date of application.
- Category E can be combined with employment income, non-employment income and cash savings to reach the £29,000 figure.
What is Category E of the spouse visa financial requirement?
Category E is the income category for pension income. It sits in Appendix FM-SE of the Immigration Rules. That is the part of the rules setting out how income for a partner application is calculated and evidenced.
The pension can be received by the sponsor or by the applicant. The figure counted is the gross annual pension income, before tax. It can be a pension either partner already draws, whatever their age.
Unlike most other categories, Category E does not use a 12-month total. It uses the annual rate the pension pays at the date of application.
The pension must already be in payment. It must have become a source of income at least 28 days before the date of application. A pension that has been awarded but has not started to pay cannot be counted.
Category E may be added to employment income, non-employment income or cash savings. The spouse visa financial requirement is £29,000, and Category E is one of six ways to meet it.
What pensions count under Category E?
Category E covers a defined set of pensions set out in Appendix FM-SE. A payment that is not a pension of one of these kinds cannot be counted.
The qualifying pensions are:
- the UK Basic State Pension;
- the UK Additional or Second State Pension;
- an HM Forces Pension;
- a State pension paid by another country;
- an occupational pension from an employer or former employer; and
- a private or personal pension.
A War Disablement Pension and a War Widow’s or Widower’s Pension may be treated as pension income under Category E. So may other payments for life under the War Pensions Scheme, the Armed Forces Compensation Scheme or the Armed Forces Attributable Benefits Scheme.
A one-off pension lump sum is not pension income. A tax-free lump sum taken at retirement is treated as capital. It can only be counted if it is held as cash savings under Category D.
How is Category E pension income calculated?
The figure counted is the gross annual amount the pension pays. Where a pension pays monthly, the annual figure is the monthly gross amount multiplied by 12. Where it pays weekly, the weekly gross amount is multiplied by 52.
Category E does not look back over the previous 12 months. It takes the pension’s current annual rate. This differs from Category C, where the figure is the amount actually received in the year before the application.
One sponsor receives an occupational pension of £11,000 a year and a State pension of £9,600 a year. The Category E figure is £20,600. Added to a partner’s salary of £20,000, the couple reach £40,600, which meets the requirement.
What is the 28-day rule for Category E pension income?
The pension must have become a source of income at least 28 days before the date of application. The pension must have started to pay, and the first payment must have been at least 28 days before the application is made.
A pension that has been confirmed but has not yet made a payment cannot be counted. A pension paying for fewer than 28 days at the date of application also cannot be counted under Category E.
Where the pension has been paying for more than 28 days, the full annual rate is counted. This is so even where only one or two payments have been made.
Can Category E pension income be combined with other sources?
Category E pension income adds to employment income under Category A, to the first part of Category B, and to non-employment income under Category C. It also adds to cash savings under Category D. Each of these adds directly to the annual pension figure.
The second part of the Category B test uses a different figure. The gross amount of pension actually received in the 12 months before the application is added to the Category B 12-month earnings total.
Where the couple also rely on cash savings taken out of the same pension pot, the pension provider’s evidence must show that withdrawal. This stops the same money being counted twice. The cash savings guide sets out how savings are counted, and the employment income guide covers Category A and Category B.
Category E where an overseas sponsor is returning to the UK
An overseas sponsor returning to the UK can rely on Category E pension income. A State pension paid by another country, and an occupational or private pension paid abroad, both count.
It does not need to be paid into a UK account, and it does not stop being a source of income when the couple move. The 28-day rule still applies, and the pension must be in payment when the application is made. The returning sponsors income guide covers the wider returning-sponsor position.
What specified evidence is required for Category E?
Appendix FM-SE sets a fixed evidence list for Category E, and all of it must be provided.
Official documentation confirming the pension entitlement and its amount must be provided. Where that documentation comes from depends on the pension:
- the Department for Work and Pensions, for the UK State Pension;
- the relevant government department or the Veterans Agency, for an HM Forces Pension or a war pension;
- the overseas pension authority, for a foreign State pension; and
- the pension company, for an occupational or private pension.
A personal bank statement from the 12 months before the date of application is also required. It must show a pension payment into an account in the sponsor’s name.
Any document covering a period that ends on the date of application must be dated no earlier than 28 days before the application is made.
How Category E compares with the other income categories
Category E is the simplest of the income categories to calculate, because it uses a single annual figure and no averaging. It also has no minimum period of the kind Category A and Category B apply to employment, beyond the 28-day rule.
Where a retired sponsor also has income from letting a property or from investments, that income is counted separately under Category C. Where a sponsor is still working as well as drawing a pension, the salary is counted under Category A or Category B. The pension is counted under Category E. Both are then added together to reach £29,000.
Frequently asked questions
Does Category E use the annual pension rate or a 12-month total?
The annual rate. Category E takes the gross annual amount the pension pays. The 12-month total is only used where pension income is combined with the second part of a Category B application.
Can a pension that has just started be used?
Only where it has been a source of income for at least 28 days before the date of application. A pension awarded but not yet paying, or paying for fewer than 28 days, cannot be counted under Category E.
Does a foreign pension count under Category E?
Yes. A State pension from another country, and an occupational or private pension paid abroad, both count. The pension does not have to be paid into a UK bank account.
Is Category E income counted before or after tax?
Before tax. The figure is the gross annual pension income.
Can both partners’ pensions be added together?
Yes. A pension received by the sponsor and one received by the applicant can both be counted under Category E. Each is added to the other permitted income.
Does a War Disablement Pension count under Category E?
Yes. A War Disablement Pension and a War Widow’s or Widower’s Pension may be treated as pension income. So may similar payments for life under the armed forces schemes.
How Whytecroft Ford can help
Whytecroft Ford’s IAA-regulated immigration team prepares partner visa applications that rely on pension income. That includes retired sponsors, sponsors drawing an occupational pension early, and couples combining a pension with a salary or with savings. The team is experienced, approachable and used to assembling the evidence Appendix FM-SE requires.
To discuss a spouse visa financial requirement with our team, call 0208 757 5751 or use the contact form.
The material in this article is provided for guidance and general information only and is not intended to constitute legal or other professional advice upon which you should rely. In particular, the information should not be used as a substitute for a full and proper consultation with a suitably qualified professional. UK Immigration Rules are subject to change. Please do contact the Whytecroft Ford team if you require further advice.
