The United Kingdom is considering a new investor visa for wealthy foreigners as Chancellor John Healey explores ways to attract investment and boost economic growth ahead of the October budget. The proposed route could revive a visa pathway closed in 2022 over concerns about money laundering, although the government has not confirmed any decision.
According to Bloomberg, immigration lawyers say the absence of an investor visa has left some wealthy individuals and entrepreneurs struggling to find suitable routes to settle in Britain. The government faces pressure to attract investment while responding to public concerns about immigration.
The previous investor visa was scrapped by the Conservative government led by Boris Johnson amid concerns that applicants, particularly from Russia, could use the scheme to launder illicit money.
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What proposals are under consideration?
One proposal from the Institute for Public Policy Research (IPPR) recommends requiring applicants to invest £5 million over five years through a vehicle overseen by the state-owned British Business Bank. The pooled money would support innovative and high-growth sectors, with investors receiving a fixed return below market rates.
A separate proposal from lobby group Foreign Investors for Britain suggests a minimum investment of £2.5 million in qualifying investments. In exchange, applicants could pay a flat annual tax of £200,000 for up to 15 years. The group estimates that its plan could generate more than £225 billion in inward investment over a decade.
The Office for Investment has also been consulting on an invitation-only route requiring £5 million in investment.
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These are proposals under consideration, not confirmed visa rules. The final investment threshold, eligibility criteria and tax arrangements remain undecided.
Why wealthy entrepreneurs are struggling to move to Britain
Immigration lawyers say existing routes do not adequately meet demand from wealthy individuals who want to establish businesses or invest in the UK.
Sacha Wooldridge, head of immigration at law firm Birketts, told Bloomberg that moving to Britain can be difficult without a family connection or eligibility for another visa category. She estimated that thousands of wealthy prospective migrants had been turned away since the investor route closed.
What a new route could mean for investors
The government is seeking to attract capital while addressing concerns about immigration and wealthy residents leaving Britain following changes to its non-domiciled tax regime.
A new investor visa could provide another route for foreign entrepreneurs, but its appeal would depend on the investment requirements, tax treatment and safeguards against financial abuse. Until the government announces a decision, prospective applicants must rely on existing visa categories.
