Review of the Tier 1 (Investor) route confirms permanent closure

The Tier 1 (Investor) route launched in June 2008. This route allowed high net worth individuals making a substantial investment in the UK to apply for permission to live in the UK.  

 

The Tier 1 (Investor) route closed to all new applicants with immediate effect on 17 February 2022. It is no longer possible to apply for initial permission under this route. People who currently hold leave under this route can apply to extend their visa, apply for their family to join them or apply to settle in the UK.  

 

There was widespread coverage of the sudden closure of the Tier 1 (Investor) route. At the time, the Home Office cited security concerns which included association with corruption and illegally acquired wealth. Despite reforms intended to prevent abuse of the route, the Home Office took the decision to close it last year.  

 

In March 2018, the government announced it would conduct a review of individuals who had entered the UK under this route, prior to reforms made in 2015. Suella Braverman KC, Secretary of State for the Home Department, has now detailed the government’s response to that review of over 6,000 cases.  

 

In a statement to Parliament on 12 January 2023, Ms Braverman summarised the findings of the review. The review found that a small minority of individuals connected to the route were “potentially at high risk of having obtained wealth through corruption or other illicit financial activity, and/or being engaged in serious and organised crime”. Furthermore, immigration routes based on passive wealth of applicants led to “inherent difficulties”. 

 

The government has stated that it continues to consider alternative options which aim to support investment-based migration to the UK; however, this will be done through reforms to the existing Innovator visa route. Under this route, people can apply for an Innovator visa if they want to set up and run an innovative business in the UK, with the business having been endorsed by an approved body. The reforms would place increased emphasis on the individual applicant’s history as an investor in innovative businesses and an assessment of their plans to actively engage in the relevant business activity in the UK. This is in contrast to routes which are based solely on the basis of the applicant’s personal wealth. 

 

If you would like any advice or assistance regarding an Innovator visa, or any other business immigration routes, please do not hesitate to contact our Immigration team.