The Financial Times reported this week that Chancellor John Healey will not include a new investor visa route in his Budget on 28 October 2026. On the face of it, this may look like a setback for wealthy individuals and families hoping to move to the UK. However, the detail of the report tells a more positive story. It makes clear that bringing back some form of investor visa is still being discussed at senior levels of Government. The decision may therefore be more a question of timing than an outright rejection of the policy.
What do we know about the proposals so far?
Plans for a new UK investor visa were reportedly well advanced under Sir Keir Starmer's Government, with the proposed route having been developed by former Business Secretary Peter Kyle in conjunction with Varun Chandra, the Downing Street Business Adviser (who remains in post under Andy Burnham).
The Financial Times reports that, under the proposal:
- investors would set up investment funds worth at least £5m, administered by the British Business Bank;
- the funds would be invested in UK innovation and scale-up businesses, and the investor could choose to focus on sectors such as life sciences, defence tech and AI;
- the investor would have a seat on the investment panel; and
- in return, the investor would receive residence rights and potentially a fast-track route to citizenship.
This is a very different model from the Tier 1 (Investor) visa which closed in 2022. The emphasis is on active, productive investment and genuine engagement with British businesses. As one person briefed on the plan put it, the route would be for “working investors only”. A credible design of this kind could bring real benefits for the UK economy.
The recent change of Prime Minister may have slowed progress. Even so, the fact that the investor visa features in media coverage of the Chancellor's first Budget, and reportedly still has support within Government, is a positive sign and suggests that the policy is still under active consideration rather than shelved.
Filling a gap
Since 6 April 2025, the UK has offered a new "FIG regime" for people arriving in the UK. Individuals who become UK resident after at least ten consecutive tax years of non-UK residence can claim relief from UK tax on their foreign income and gains (FIG) for their first four years of UK residence. The regime is designed to make the UK an attractive destination for internationally mobile individuals.
However, there is currently no dedicated immigration route for wealthy individuals who want to come to the UK as investors. A new investor visa would fill this gap. It would give those attracted by the FIG regime a practical way to move to the UK, and allow the UK's tax and immigration policies to work together in attracting investment.
Looking ahead
The UK immigration landscape is set for significant change with the introduction of a new “Earned Settlement” regime (read our commentary on this regime) and will change how and when migrants qualify for indefinite leave to remain (permanent residence) in the UK. Under the proposals, settlement will be earned through contribution to the UK, with accelerated routes expected for those who make a particularly significant contribution.
Last month, the Home Secretary told the Home Affairs Committee that the Earned Settlement policy statement would be published "later this year", and before February 2027.
Any investor visa route would need to offer a pathway to long-term residence and settlement in the UK, as this is central to attracting wealthy entrepreneurs and families. Launching a new investor visa before the Earned Settlement rules are properly embedded could create uncertainty for applicants and require transitional arrangements, which could undermine confidence in the route from the outset. The delay in the return of the investor visa may therefore just be a matter of sequencing.
For internationally mobile individuals and families thinking about a move to the UK, the message is one of cautious optimism. The investor visa may not feature in next week's Budget, but it appears to retain support within Government. We are therefore hopeful that a relaunch will follow once the Earned Settlement framework is in place and has proved workable. In the meantime, anyone considering a move to the UK should keep their options under review, consider whether existing routes could work as a stepping stone, and be ready to act as soon as further details are published.
Macfarlanes is a pre-eminent law firm advising a global client base across Private Capital, Private Wealth, M&A and Disputes.
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