Tier 1 Investor Visas officially scrapped!

Priti Patel announced last month that the commonly known “golden visa” is officially scrapped with immediate effect, therefore preventing any new applicants.  

The scheme was introduced in 2008, in which we have seen several changes made by the Home Office throughout its ‘life’. In short, the Tier 1 Investor Visa allowed residence for wealthy individuals who invested at least £2 million in UK share capital or loan capital in active and trading UK registered companies, allowing their families to join them. Holders of these visas could then apply for permanent residency at a faster rate, depending on the level of investment. 

The decision to abandon this visa has come about due to discussions over the potential to ‘abuse’ the scheme, and the governments ‘new plan for immigration’. The Home Office has confirmed that residency in the UK through a similar route will now 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.” They have also confirmed they will be making reforms to the innovator route, to provide an ambitious investment route which will work more effectively in support of the UK’s economy. 

If you are considering a move to the UK and would like assistance with tax planning, we would strongly suggest this is undertaken ahead of your arrival to the UK. Our International Private Client Tax team can assist with all aspects from pre-arrival tax planning to any domicile and remittance basis queries. 

If you require further information or assistance in relation to tax planning in advance of moving to the UK, please contact Lynn Gracie, Private Client Tax Director, Jordan Clark, Private Client Advisor, or your usual AAB contact.

Find out more about our International Private Client Tax team