UK to scrap Tier 1 Investor
visa route

17 February 2022

UPDATE: The Home Office has now announced that the Tier 1 Investor route is closed with immediate effect. Read more here.

The UK government is set to scrap the Tier 1 Investor immigration route from next week, according to recent reports.

The route was first introduced in 2008 to encourage wealthy individuals from outside the EU to invest money in the UK. Foreign nationals can apply for an Investor visa (often known as a ‘golden visa’) if they have funds of at least £2m to invest in the UK.

The scheme has been under review for some time due to concerns that it is open to abuse, and this is not the first time its future has been under threat. Back in 2018, the Home Office announced that the route would be suspended, only to backtrack on the decision a few days later.

However, fresh scrutiny of the route has arisen recently due to fears that criminal groups and the super-rich from several countries such as Russia, China and Kazakhstan could be abusing the scheme and making the route vulnerable to corruption.

The UK government is now facing growing pressure to cut ties with Russia over the current threat of invasion to Ukraine. The Home Office has granted 14,516 Investor visas to Russian nationals since the scheme opened in 2008.

What is the Tier 1 Investor route?

You can apply for a Tier 1 Investor visa if:

  • You want to invest £2,000,000 or more in the UK
  • You are over 18
  • You can prove that the money belongs to either you or your husband, wife, unmarried or same-sex partner
  • You have opened an account at a UK regulated bank to use for your funds.

Your funds must be held in one or more regulated financial institutions and be free to spend (‘disposable’) in the UK. Your money can be in the UK or overseas when you apply.

Individuals holding a Tier 1 Investor visa can then apply for permanent residency in the UK. How quickly they can apply for Indefinite Leave to Remain (ILR) depends on how much money they invest:

  • Those investing £2m can apply after 5 years
  • Those investing £5m can apply after 3 years
  • Those investing £10m can apply after 2 years.

What happens next?

Smith Stone Walters awaits an official announcement from the Home Office on the future of the Tier 1 Investor route, and will provide an update in due course.

If you are planning to apply for an Investor visa, please reach out to Smith Stone Walters for advice. You can call us on 0208 461 6660 or email info@smithstonewalters.com.

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