Reasons for Closure
Despite the category being under constant review in recent years, the reason for the sudden abolishment without prior notice is related to the security issue of the source of funds.
The British government made clear that the lack of notice was intentional and aimed at avoiding an influx of applications before the category closed.
The British government published a statement that this visa category continues to “give rise to security concerns” (including concerns about people acquiring wealth illegitimately and being associated with wider corruption) and that reforms made to the route have been insufficient to “address the risk of the route being used to transfer illicitly obtained wealth”. We understand this to be part of the Government’s wider fight against corruption. Home Secretary Priti Patel stated that “closing this route is just the start of the Government’s renewed crackdown on fraud and illicit finance” and is part and parcel of its ”New Plan for Immigration”.
This also has a political context and can be, at least partly, understood in light of the latest, tense, discussions between the UK and Russian governments.
Applications for Extension and Settlement as a Tier 1 Investor
Currently, the pending application for Tier 1 Investor visas are unaffected. Those who already hold visas in this category (and their dependents) will be able to continue to make applications to extend their immigration permission and to settle in this category.
We also recommend those who currently hold an investor visa and wish to settle in the UK in the future, seek advice on future planning, particularly if they spend a significant amount of time outside the UK.
New Investor Route?
There will be no comparable route for wealthy overseas individuals or families who wants to relocate to the UK in the future. According to the UK government's announcement, upcoming amendments to Innovator visas appear to be discussed and it remains to be seen how effective this can be and whether this is something of a reversion to the old Tier 1 Entrepreneur route.
The British government announced that they intend to make future alternative provisions for investment-related migration through reforms to the existing Innovator immigration route. This will make more targeted provision for investment-related migration, offering a route for entry and stay for overseas nationals with a track record of investment activity overseas and credible plans to engage in such activity. It is expected that these new arrangements will be delivered through further changes to the Immigration Rules in Autumn 2022.
Unlike Tier 1 Entrepreneur route, Tier 1 Investor route never required job creation and running a company. It remains to be seen though what the requirement of ‘track record of investment activity overseas’ is and to what extent this will require prior experience of running or working for a business.
Further details of more options for overseas investors will be updated in the newsletter as soon as they are announced.