On 17th February 2022, the Home Office closed the Tier 1 (Investor) visa route to new applicants. The decision has given rise to a number of immediate questions:
- Why has the Tier 1 (Investor) Visa Route Closed?
- What does it mean for pending applications?
- What does it mean for those individuals already in the Tier 1 (Investor) route seeking to extend their leave or apply for settlement?
- Will there be a new immigration route for overseas investors?
Taking each of these in turn:
Why has the Tier 1 (Investor) visa route closed?
The reasons given by the Home Office for closing the route relate to security concerns about the source of funds. Those reasons are set out in full here, but it is worth noting in particular the comments of the Home Secretary, Priti Patel, where she states:
“I have zero tolerance for abuse of our immigration system. Under my New Plan for Immigration, I want to ensure the British people have confidence in the system, including stopping corrupt elites who threaten our national security and push dirty money around our cities.”
What does it mean for pending applications?
Pending applications for Tier 1 (Investor) visas are unaffected.
If an application for entry clearance, leave to enter or leave to remain has been made before 1600 on 17 February 2022, such applications will be decided in accordance with the Immigration Rules in force on 16 February 2022.
What does it mean for those individuals already in the Tier 1 Investor route seeking to extend their leave or apply for settlement?
Those already in the Tier 1 (Investor) route will also continue to be able to apply to extend their stay and settle in the UK.
The changes preserve the ability of those who already have leave to enter or remain as a Tier 1 (Investor) Migrant to extend their stay in the route, including an applicant’s ability to make an application for entry clearance outside the UK if they have held leave as a Tier 1 (Investor) Migrant in the 12 month period preceding the date of application, and to apply for settlement.
Will there be a new immigration route for overseas investors?
The short answer is that there may be no comparable route for wealthy individuals/families to move to the UK if they are seeking to rely on a passive investment, as opposed to running a company.
The Government intends to make future alternative provision 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 remains to be seen what the Home Office means by ‘track record of investment activity overseas’ and to what extent this will require prior experience of running or working for a business. It is expected these new arrangements will be published in Autumn 2022.
Alternative business-related immigration routes
No changes have been made to the other business immigration categories of the Immigration Rules. Links to these categories appear below.
Tier 1 Entrepreneur Visa (Extension & Settlement only)
Tier 1 Investor Visa (Extension & Settlement only)
Representative of an Overseas Business visa
British National Overseas Visa
Subject to a careful assessment of the individual’s circumstances, there will undoubtedly be situations where an individual who might have been proposing to apply for the Tier 1 (Investor) visa can instead apply under one of the other business categories.
We have considerable experience in successfully preparing business-related immigration applications and will be happy to discuss your circumstances and advise on the suitability of these alternatives. Please get in touch with Charles Green or your usual Rooks Rider Solicitors contact
