World Immigration News

UK private wealth immigration: the Budget and

Release Date: 2025-12-08
Media: Burges Salmon
Summary: The 2025 UK Budget offered very little in terms of new immigration policy, with political attention shifting more toward asylum reform rather than economic migration. Although the government continues to express a desire to attract investors, it has not introduced a replacement for the former Tier 1 Investor visa. Most of the immigration-related content in the Budget simply referenced the October 2025 updates to the Immigration Rules, which expand the High Potential Individual route, allow smoother transitions from student status to the Innovator Founder route, simplify access to the Global Talent visa, and establish a new taskforce aimed at bringing leading professionals to the UK. Nevertheless, apart from the Innovator Founder visa or the unconventional self-sponsorship model under the Skilled Worker route, there remains no clear pathway for entrepreneurs or investors seeking to move to the UK.

In November 2025, the government launched a consultation on a new “earned settlement” framework that proposes extending the standard residence requirement for Indefinite Leave to Remain from five to ten years, with possible variations between three and twenty years. The proposal is driven by the significant rise in net migration between 2021 and 2024, especially the large number of arrivals under the Health and Care visa. Individuals who are already settled, family members of British citizens, those covered by the EU Settlement Scheme, and holders of British National (Overseas) status would not be affected. Under the proposed system, settlement would depend on four factors: character, integration, contribution, and residence, with each applicant’s circumstances determining whether the qualifying period is shortened or extended. Higher earners, those engaged in community work, and holders of certain high-skilled visas may qualify for significantly reduced residence periods, provided they have no outstanding tax or government debts.

These changes intersect with the UK’s four-year regime for foreign income and gains, meaning that those seeking early settlement would need to ensure sufficient taxable UK income in the years immediately preceding an application. At the same time, individuals who reach ten years of UK tax residence may become long-term residents for inheritance tax purposes, which exposes their worldwide assets to UK inheritance tax. Because tax residence and immigration residence do not always align, affected individuals are advised to seek professional guidance.

There are concerns that an increase in applications for settlement and citizenship may exceed the Home Office’s processing capacity. The government’s encouragement of citizenship applications may also create difficulties for nationals of countries that do not allow dual nationality. Furthermore, applicants who take maternity or paternity leave, or who experience long-term illness or disability, are not excluded from the consultation, which could result in stricter outcomes compared with existing immigration rules.
Tags: United Kingdom