Show us the money: immigration for the better off

A series of unprecedented world events throughout 2022, and the lifting of restrictions following the Covid-19 pandemic, have led to record levels of international immigration to the UK.

The latest quarterly immigration statistics, published on 25 May 2023, showed total long-term immigration last year was around 1.2 million and emigration around 557,000, resulting in net immigration of around 606,000.

The increase is driven by non-EU nationals arriving in the UK for study, family, work, business, and protection reasons, accounting for around 80% of total immigration. The UK also remains an attractive option for investors and high net worth individuals looking to make it their home. The rules have changed for this latter group of individuals, and this article sets out their current options.

Shifting approach

Historically, a retired person with disposable income above £25,000 and connections to the UK could obtain residency for five years, with the option of permanent settlement. This route was revoked by the UK Government in 2008. The alternative route for people of independent means was the tier 1 (investor) visa scheme, which allowed individuals to invest £2,000,000, £5,000,000 or £10,000,000 in qualifying UK companies, and in some cases, UK Government bonds. It led to the possibility of obtaining permanent settlement in as little as two years. 

Following concerns by the then Home Secretary Priti Patel that the route “facilitated the presence of persons relying on funds that have been obtained illicitly or who represent a wider security risk”, it was closed with immediate effect on 17 February 2022. This was underpinned by the UK’s strategy of moving away from exchanging investment for residency and citizenship, amid criticism of several countries’ golden visa programmes. Those already in the UK under this route can however extend their visa before its full closure in February 2028. 

So, what options do persons of independent means or those termed as high net worth individuals have now? There are still options, but rather than basing these on wealth alone, the UK Government appears to have shifted its approach to business or talent-based routes, reinforcing the mantra of attracting the best and brightest. Most routes now demand an applicant’s track record as an investor in innovative businesses and their plans to engage actively in such activity in the UK.

Innovator Founder route

Replacing the previous routes of “innovator” and “start-up” categories, the Innovator Founder route was opened on 13 April 2023, with the aim of providing greater flexibility to clients while ensuring stringent evidential requirements. Although no specific financial investment is required, entrepreneurs have to show they are looking to establish an innovative, viable and scalable business in the UK. Following a business plan, approval has to be obtained from an endorsing body which will assess it against the criteria before it is assessed for a second time by the Home Office when the visa application is made. Successful applicants obtain a three year visa, with the possibility of permanent settlement at the end of this period provided certain business development criteria are met.

There are two positive changes under this improved route in comparison with its predecessor. Mandatory check-ins with the endorsing body have been reduced to two throughout the visa duration of three years, which allows applicants to concentrate on the development of their business. The applicant also has permission for secondary employment outwith their own business, which allows for financial stability, especially during the early stages of the setup.

Global Talent visa

Formerly known as the Exceptional Talent visa, this route is for talented and promising people in specific sectors such as sciences, the humanities, engineering, the arts, and technology, who wish to work in the UK. The process requires evidence of achievements and qualification as well as an endorsement by one of the approving bodies. This route requires no cash investment and leads to eligibility for permanent settlement in three years.

UK expansion worker visa

This option is for established businesses abroad looking to set up their first branch or subsidiary in the UK. It comes under the umbrella of the new Global Mobility routes designed to facilitate economic growth and trade in the UK post-Brexit.

The process is first to set up a sponsor licence, with appointed key personnel who will be responsible for the running and management of the licence. A visa application then follows, which allows the individual to work as a sponsored employee.

This route does not lead to settlement and therefore remains less popular than the skilled worker route.

Sponsor licence and skilled worker route

There are three steps to this process. The first is to establish a UK company with a genuine business and plan for development for the next six months. All regulatory aspects must be complied with. This includes registration with HMRC, opening of a business bank account, and at least one UK based employee.

The second step is to apply for a sponsor licence for that business in order to widen the employee pool to those who require a visa. Once set up, a certificate of sponsorship is obtained for the specific foreign employee who is to be sponsored. This certificate will show that there is a genuine vacancy at an appropriate skill level from a list of eligible occupations, and salary will be in accordance with the minimum set for that role. The applicant would also need to demonstrate their English. This can be evidenced by passing an English test in speaking, listening, reading and writing at level B1, producing a degree that was taught in English, or being a citizen of a majority English speaking country.

The third and final step is to apply for a skilled worker visa, which will encompass not only the employment information but also the applicant’s personal circumstances. The visa can be granted for up to five years, with eligibility to settle at the end
of that period.

Partner of a British citizen

Those who have British partners who either are living with them outside the UK or are already in the UK, can avoid all business and employment focused routes. Instead, they can apply for a partner visa whereby the financial requirement shifts to the sponsoring partner. The easiest way is for the sponsoring partner to show a salary of above £18,600 gross annual income for a period of six months. In the case of high net worth individuals, savings can be used to demonstrate financial viability. A minimum of £62,500 has to be shown in a cash access account, or in some cases an investment account, for a period of six months before the date of application. The initial application is granted for 2.5 years, followed by an extension of a further 2.5 years which then leads to permanent settlement.

Unlike business or work visas, there is comforting flexibility with the spousal route. There is no requirement for the migrant spouse to work for a specific employer, giving them much greater control over their career trajectory. Periods of unemployment are not an issue, and time outside the UK of up to 540 days is permitted over the five years without posing a barrier to British citizenship.

Room for reform

While the Government’s aim is to reduce net migration, a reformed new route to attract individuals with wealth from legitimate sources can only add value to the migrant pool. Where the cost of living can dissuade other visa applicants from staying in the UK long term, high net worth individuals will stay without burdening the resources and add to the economic growth of the country. 

The security concerns would resurface. These could be addressed by placing a multi-layered due diligence structure to ascertain the source of wealth and subjecting applicants to robust evidential requirements. To facilitate this, a dedicated department within the Home Office could be set up with the sole purpose of conducting strict financial checks, instead of relying on the UK banks to conduct cursory checks. A win-win: security risks would be significantly lowered, and the UK would regain its attractiveness to genuine investors for years to come.