UK-WIDE: An Introduction to Immigration: High Net Worth Individuals

Policy Uncertainty and Volatility – The Economic and Political Context

The UK immigration landscape in 2025 continues to evolve at pace, shaped by shifting political priorities and ongoing regulatory reform, with further restrictive measures anticipated but no clear timetable for implementation. For businesses, tightening rules coincide with labour shortages and increasing compliance burdens, prompting businesses to reassess recruitment strategies, workforce planning and compliance frameworks.

For high net worth individuals (HNWIs), the abolition of the remittance basis and the introduction of the new foreign income and gains (FIG) regime, along with the closure of traditional investment routes, have prompted a reassessment of UK residency, underscoring the need for co-ordinated immigration and tax planning. As everyone assesses the new regime, they are also becoming increasingly aware of opportunities, incentivising proactive tax and immigration strategies.

Policy stability is unlikely before the next general election, so both employers and investors must remain agile, adapting swiftly to shifting Home Office guidance, regulatory reforms and the evolving immigration landscape. Similarly, immigration advisers must anticipate policy shifts, align strategies with broader fiscal and corporate considerations, and help clients navigate an increasingly complex and politicised environment.

Investor and Entrepreneur Pathway Limitations

The closure of the Tier 1 (Investor) Visa in 2022 has left a significant void for HNWIs seeking UK residency through investment. The UK’s current framework no longer accommodates passive investors, prompting many to explore alternative jurisdictions, such as Italy, Switzerland and the UAE, which continue to offer competitive residency-by-investment options.

Amid the “millionaire exodus”, discussions in the May 2025 White Paper and recent reports suggest the potential revival of a reformed investor visa focused on strategic sectors like biotech, clean energy and AI, with enhanced due diligence to address past concerns. However, no firm indications from the Home Office confirm reintroduction as of October 2025.

The Innovator Founder Visa, introduced as the Investor Visa’s successor, has proven more restrictive and less commercially appealing, but this is starting to look like a viable option for certain applicants. It demands endorsement from a limited number of bodies, a detailed business plan and active business engagement, deterring traditional investors seeking a straightforward capital-based route.

Despite these limitations, the UK remains attractive for founders with high-growth, innovative ventures. Those able to navigate endorsement requirements can access a well-established ecosystem of funding, research collaboration and market opportunities, positioning themselves for long-term commercial success and potential settlement.

In the absence of a dedicated investor route, many HNWIs have looked to the skilled worker visa route to develop their business in the UK and to relocate families to this country. While this approach has provided a legitimate pathway for some, the government has tightened regulations in this area, but it remains a viable option in limited circumstances, which may be worth exploring for some HNWIs.

There is sector-wide lobbying for the creation of a new, regulated investment pathway, potentially modelled on international best practices with enhanced due diligence. In the interim, advisers must assist HNWIs in exploring alternative routes, such as the Global Talent, Skilled Worker or Innovator Founder visas. For those remaining, wealth preservation strategies like trusts and back-up residencies in the EU or further afield are increasingly recommended amid economic pressures.

Increasing Sponsor Licence Scrutiny and Compliance Crackdowns

Businesses are now operating under heightened Home Office scrutiny, facing increasingly rigorous sponsor licence compliance requirements, including detailed record-keeping, reporting duties and unannounced audits. Non-compliance carries severe repercussions, from licence suspension to civil penalties and reputational damage.

Recent Home Office guidance indicates a renewed focus on sponsor accountability, with enforcement activity expanding beyond large corporations to include SMEs and professional practices, with record numbers of licences being revoked in 2025. Employers must therefore ensure proactive compliance by conducting internal audits, updating HR systems, and training staff on immigration responsibilities and how to conduct Right to Work checks to protect the business’ licence and avoid fines, recruitment freezes and reputational harm.

Digitalisation and Data Sharing: The Next Chapter for UK Immigration Compliance

The UK government is rapidly advancing its digitalisation agenda, targeting fully digital immigration and compliance systems by 2030. Central to this transformation is the rollout of eVisas, which replace physical biometric residence permits and vignettes with secure online records of immigration status.

Under the Home Office’s Digital Strategy, employers and public bodies will verify individuals’ rights to work and reside via digital portals, supported by extensive data sharing between the Home Office, HMRC and the Department for Work and Pensions. For both businesses and HNWIs, this signifies a new era of transparency and oversight. Authorities will be able to cross-check immigration, payroll and tax data more frequently and easily, making accurate record-keeping and compliance essential. Employers must ensure payroll accuracy and salary threshold compliance, and maintain robust HR systems to prepare for Home Office audits.

For businesses that invest early in digital platforms and compliance systems, these changes offer the opportunity to streamline HR processes, reduce administrative burdens and gain a competitive edge. While transitional arrangements still require some EU citizens and long-term residents to update or replace physical documents, the long-term vision is a fully digital, eVisa-based immigration system. For immigration advisers, staying alert to evolving digital compliance and eVisa requirements will be key to protecting clients from inadvertent breaches.

Skilled Worker Visa Reform

The immigration reforms introduced in July 2025 represent a major recalibration of the UK’s approach to economic migration. By restricting the Skilled Worker route to graduate-level (RQF Level 6) occupations, the government has excluded approximately 180 mid-skilled roles, significantly narrowing eligibility. Alongside this change, the government has increased the minimum salary requirement for both existing and new entrants on the Skilled Worker visa route, raised the fees payable by employers for sponsoring overseas talent, and continues to increase the visa application fees. These measures form part of a broader strategy to reduce net migration and encourage investment in the domestic workforce.

While this has created challenges for sectors reliant on mid-skilled labour, including healthcare, hospitality and manufacturing, the increased skill requirements are not necessarily disadvantageous for high net worth clients or their enterprises. For those establishing or investing in UK-based ventures, the focus on higher skilled, higher salaried roles can support recruitment of top-tier talent, enhance business credibility and align with long-term residency or settlement goals.

Although transitional protections exist for current visa holders, the broader trajectory is clear: stricter eligibility, higher salary thresholds, increased cost of sponsoring foreign workers, and a more selective labour migration system. Businesses must adapt by revising workforce planning, exploring alternative routes and investing in domestic training to mitigate long-term skills shortages.

Settlement Rules Reform

The government’s proposal to extend the qualifying period for Indefinite Leave to Remain (ILR) from five to ten years marks a significant shift in the settlement landscape. Outlined in the May 2025 White Paper, this change aims to align permanent residence with sustained economic and social contribution. The proposed “earned settlement” model would allow accelerated eligibility based on measurable integration indicators, such as consistent employment, tax contributions, English proficiency and community involvement. However, the full criteria remain subject to consultation, and questions persist over whether reforms will apply retrospectively or prospectively.

If implemented, the extension will substantially affect long-term immigration planning for both individual clients and corporate sponsors, particularly where ILR is tied to career progression or business continuity. Early legal advice, accurate record-keeping and careful timing of extension applications will be crucial to managing transition risks. A new parliamentary inquiry into routes to settlement, launched in October 2025, may influence final outcomes.