In a shock announcement, the Home Office has confirmed that the Tier 1 Investor route has been closed to all new applicants of all nationalities with immediate effect from 16:00 on 17 February 2022.
The announcement comes in the context of a review into the route amid security concerns, particularly in relation to Russian nationals using the route to gain a “fast track” to citizenship. However the findings of the ongoing review into Tier 1 investor visas granted between 2008 (when the scheme first launched) and 5 April 2015 has yet to be published.
The Home Secretary, Priti Patel, commented in her press release:
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. Closing this route is just the start of our renewed crackdown on fraud and illicit finance.
The Home Office press release also hinted at reform to the settlement requirements for existing visa holders; it stated that going forwards settlement will be conditional on applicants executing an investment strategy that can show genuine job creation and other tangible economic impacts, passively holding UK investments will no longer be enough to obtain settlement.
The speed at which this decision was taken will no doubt leave some prospective applicants (and their advisers) high and dry given that there was no warning or lead in time to this decision (other than leaked press reports last night which hinted at a decision over the next week).
Although the issue of illicit funding or fraudulent activity is obviously a matter of concern, it is clear that there are other ways this issue could have been addressed, for example by applying greater scrutiny to the source of investment funds or using the Home Office’s general powers to reject applications (for example where they are of the view that the presence of a particular individual would not be conducive to the public good). Instead, of using these existing powers, the Home Secretary has taken “decisive action” and simply abolished the route.
This serves as a timely reminder for all those navigating the UK’s immigration regime that the rules can change with alarming speed.
If you have any queries regarding these changes, please contact our Business Immigration Team.
