Tier 1 Investor Visa Closure

The Tier 1 Investor visa was once one of the UK’s most prominent immigration routes for high-net-worth individuals, offering accelerated settlement in exchange for significant investment into the UK economy. However, the route is now closed to new applicants following government concerns over its security and economic benefits. While the door is firmly shut for fresh applications, existing visa holders may still be able to extend their leave or apply for settlement, provided they meet strict deadlines and compliance requirements.

What this article is about: This guide explains the background to the Tier 1 Investor visa’s closure, the impact on current holders, ongoing compliance requirements, and the options available for securing further leave or settlement. It also explores alternative UK visa routes for individuals who would previously have considered the Tier 1 Investor visa, such as the Innovator Founder and Global Talent visas. The aim is to give a clear, legally accurate overview of the current position under UK immigration law, helping applicants and advisers make informed decisions.

We begin with an overview of the visa’s original purpose, the reasons behind its closure, and the timeline of key policy changes.

Section A: Background to the Tier 1 Investor Visa Closure

The Tier 1 Investor visa was introduced in 2008 as a fast-track immigration route designed to attract high-net-worth individuals willing to invest substantial sums into the UK. The route’s main appeal lay in its minimal residency requirements, flexibility, and potential for accelerated settlement based on higher investment thresholds.

While the scheme generated significant interest from global investors, concerns began to emerge over its effectiveness and integrity. The UK Government undertook several reviews of the route, culminating in its closure to new initial applications at 16:00 GMT on 17 February 2022 with immediate effect (no grace window for switching or fresh initial applications). The decision formed part of a broader strategy to tighten immigration controls, protect the UK’s financial system from abuse, and ensure that investment-based migration delivered tangible economic benefits.

1. Purpose of the Tier 1 Investor Visa

When introduced, the Tier 1 Investor visa was aimed at attracting individuals of significant wealth who could contribute to the UK economy through qualifying investments. The minimum investment threshold was set at £1 million, later increased to £2 million in 2014. Applicants who invested more — £5 million or £10 million — could achieve settlement after three or two years respectively, compared with the standard five years.

The visa’s conditions did not require English language skills or active involvement in business. Instead, the focus was on passive investment into UK government bonds, share capital, or loan capital in active and trading UK-registered companies. This made it one of the most accessible routes for wealthy individuals seeking UK residence.

2. Reasons for Closure

The closure of the Tier 1 Investor visa was driven by a combination of political, economic, and security factors.

• Security and Financial Crime Risks: Concerns were raised about the origin of some applicants’ funds, particularly those from jurisdictions with higher risks of corruption or money laundering.
• Economic Effectiveness: Reviews found limited evidence that the route delivered substantial, long-term benefits to the UK economy beyond the initial investment.
• Reputation and Integrity: The government considered the scheme vulnerable to exploitation and potentially damaging to the UK’s international reputation for robust immigration controls.

3. Timeline of Closure

• 2014: Investment threshold increased from £1 million to £2 million, and government bonds were retained as a qualifying investment.
• 29 March 2019: Government bonds removed from the list of eligible investments for new money, directing capital into productive economic activity. The funds-holding requirement for source of funds was lengthened from 90 days to 2 years.
• 17 February 2022: The Home Office announced the immediate closure of the route to new applications. No transitional grace period was given for those who had not yet submitted an application.
• Post-closure: Existing visa holders retained the ability to extend or apply for settlement within specified deadlines, provided they continued to meet the investment and other eligibility requirements.

Section Summary: The Tier 1 Investor visa was conceived as a gateway for high-net-worth individuals to secure UK residence through significant investment. While initially successful in attracting global capital, it became increasingly scrutinised for its security risks and limited economic impact. This ultimately led to its closure in February 2022, with transitional provisions in place for those already holding the visa.

Section B: Impact on Existing Tier 1 Investor Visa Holders

Although the Tier 1 Investor visa has closed to new applicants, the closure does not automatically invalidate visas that were already granted before the February 2022 announcement. Existing visa holders can, in many cases, still extend their leave or apply for settlement (Indefinite Leave to Remain), but the opportunity to do so is strictly time-limited and subject to continued compliance with the scheme’s rules.

The Home Office has set out clear transitional arrangements to ensure that those who entered under the route are not unfairly disadvantaged, while also signalling that the pathway will eventually close entirely.

1. Validity of Existing Visas

Current Tier 1 Investor visa holders can continue to live, work, and study in the UK in accordance with their existing visa conditions until their leave expires. The closure to new applicants does not alter the terms under which leave was originally granted. However, holders must ensure they comply with all conditions, including maintaining qualifying investments and avoiding activities prohibited under their visa.

2. Extension Applications

Those wishing to extend their Tier 1 Investor visa must meet the eligibility criteria in force before the route closed, including:

• Maintaining the qualifying investment (minimum £2 million) throughout their visa period.
• Ensuring that any required top-ups to their investment are made within the specified timeframes if capital has fallen below the threshold due to market fluctuations.
• Providing detailed evidence of their investment portfolio and transactions from a regulated financial institution.

Extension Deadlines:

• Final date to apply for an extension: 17 February 2026 (for most holders).
• If your portfolio included UK government bonds (only permitted for those who entered the route before 29 March 2019), you had to apply for an extension by 6 April 2023 to rely on those bonds; after that date, bond holdings must be replaced with qualifying share or loan capital.
• Applications must be submitted before the visa expiry date and must meet all evidential requirements under the pre-closure rules.

3. Settlement (ILR) Applications

Visa holders who have met the residence and investment requirements may still qualify for ILR. The relevant qualifying periods remain in place:

• 2 years for those investing at least £10 million.
• 3 years for those investing at least £5 million.
• 5 years for those investing at least £2 million.

Settlement Deadlines:

• Final date to apply for ILR: 17 February 2028.
• Applicants must continue to satisfy the investment maintenance rules until they are granted settlement, including ensuring that qualifying investments remain in place and properly documented.
• Applicants must also meet Knowledge of Life and Language (KOLL) requirements, including passing the Life in the UK Test and meeting the English language requirement at B1 or above, unless exempt.

Section Summary: The closure of the Tier 1 Investor visa does not end the rights of those already in the UK under the scheme, but it imposes strict deadlines for extensions and settlement. Visa holders must remain vigilant in maintaining their qualifying investments and ensuring they meet all evidential and procedural requirements to secure further leave or ILR before the final cut-off dates.

Section C: Compliance & Investment Requirements Post-Closure

For existing Tier 1 Investor visa holders, the ability to extend leave or qualify for settlement is conditional on strict adherence to the original investment and compliance rules. The Home Office continues to scrutinise applications closely, with an emphasis on ensuring that funds are legitimate, traceable, and remain in qualifying investments throughout the required period.

Failure to meet these obligations can result in refusal of an extension or settlement application, and in serious cases, curtailment of leave.

1. Ongoing Investment Obligations

Tier 1 Investor visa holders must maintain their investment at or above the minimum qualifying threshold for the duration of their leave. This includes:

• Keeping the required level of funds invested in qualifying UK assets — specifically, share capital or loan capital in active and trading UK-registered companies.
• Ensuring that where qualifying investments are sold or redeemed, the gross proceeds are re-invested in qualifying investments by the end of the next portfolio reporting period and, in any event, within 6 months of the sale/redemption (whichever is earlier).
• Avoiding prohibited investments, such as investment in companies mainly engaged in property investment or property management for rental income or capital growth.

2. Evidence and Record-Keeping

The Home Office requires detailed and verifiable evidence to prove compliance with the investment rules. Applicants should be prepared to submit:

• Portfolio reports produced by a UK‑regulated (FCA/PRA) financial institution covering the required period from no later than three months after the specified date through to the most recent reporting period immediately prior to application.
• Bank statements and transaction records evidencing the movement and retention of funds in qualifying assets.
• Confirmation from the regulated institution that the investment has been maintained at the required level and within permitted categories.

Timing points to watch: The initial qualifying investment must be made within three months of the specified date (entry/leave grant), unless there are exceptionally compelling reasons outside the applicant’s control evidenced to the Home Office.

3. Risks of Non-Compliance

Non-compliance can arise in several ways, including:

• Allowing the value of qualifying investments to fall below the minimum without topping up within required timeframes.
• Investing in non-qualifying assets, whether inadvertently or otherwise.
• Failing to re-invest withdrawn or redeemed funds within the required reporting-period/6‑month window.

The consequences can be severe — from application refusal to curtailment of leave. In some cases, breaches may trigger further Home Office scrutiny, including checks on the source of funds and personal conduct.

Section Summary: Maintaining qualifying investments and meeting the evidential requirements is critical for Tier 1 Investor visa holders aiming to extend their leave or secure settlement. The Home Office’s post-closure stance is one of heightened scrutiny, making accurate record-keeping and timely compliance with reinvestment and portfolio management rules essential.

Section D: Alternative UK Visa Routes for Investors & Entrepreneurs

With the Tier 1 Investor visa no longer available to new applicants, high-net-worth individuals and entrepreneurs seeking UK residence must consider other immigration options. None replicate the passive investment model, but several routes allow business-minded individuals, innovators and highly skilled professionals to live and work in the UK with potential pathways to settlement.

The right route depends on background, objectives, level of business involvement and sector expertise.

1. Innovator Founder Visa

The Innovator Founder visa is the principal route for entrepreneurs who will establish and lead a UK business. Applicants need endorsement from a Home Office-approved endorsing body and must present an innovative, viable and scalable business plan.

• No fixed minimum investment, but applicants must evidence sufficient resources to launch and grow the business.
• Permission is focused on working in the endorsed business, with limited secondary employment permitted.
• Possible settlement after three years if strict performance criteria are met, which may include revenue, growth and job creation indicators set out in endorsement reviews.

2. Global Talent Visa

The Global Talent visa suits leaders or potential leaders in academia, research, arts and culture, or digital technology. Most applicants require endorsement by an approved body, though some prize holders may qualify without endorsement.

• Freedom to work for any employer, be self-employed or found a company.
• No investment requirement.
• Settlement possible after three years for those endorsed as exceptional talent, otherwise typically five years.

3. Expansion Worker and Other Business Mobility Routes

Under Global Business Mobility, the Expansion Worker visa lets a senior manager or specialist come to the UK to establish a branch or subsidiary of an overseas business. Other sub-routes include the Senior or Specialist Worker visa and the Service Supplier visa.

• Primarily temporary work routes tied to a licensed sponsor.
• Do not lead directly to settlement, but holders may switch in-country to a settlement route such as Skilled Worker or Innovator Founder if eligible.
• Useful where the immediate need is to deploy key personnel to set up or service UK operations.

4. Family and Other Settlement Routes

Where an applicant has family ties to the UK, family visa routes may provide a path to settlement. For skilled employment, the Skilled Worker route can be suitable for senior executives and specialists sponsored by a licensed employer.

• Family visas (for example spouse or partner) can lead to settlement on the five-year route if all requirements are met.
• Skilled Worker requires sponsorship, an eligible role at the correct skill level, and salary at or above the relevant threshold.
• Some routes permit switching from within the UK subject to category-specific rules.

Section Summary: There is no direct successor to Tier 1 Investor, but credible alternatives exist for applicants ready to engage actively in business or leverage recognised expertise. Innovator Founder and Global Talent offer clear settlement tracks for entrepreneurs and high achievers, while Global Business Mobility routes meet corporate deployment needs. Family and Skilled Worker routes may also provide viable pathways depending on personal and professional circumstances.

FAQs

Is the Tier 1 Investor visa still available?
No. The route closed to new initial applications at 16:00 GMT on 17 February 2022. Only individuals granted leave under the route before that date can remain on it, subject to meeting compliance and deadline requirements.

Can I still extend my Tier 1 Investor visa?
Yes, if you were granted leave under the route before closure and you meet the original eligibility rules. For most holders, the final date to apply for an extension is 17 February 2026. Applications must be made before your current leave expires.

I invested in UK government bonds. Can I rely on these for my extension?
Only if you entered the route before 29 March 2019 and applied for an extension by 6 April 2023. After that date, bond holdings need to be replaced with qualifying share or loan capital to meet the rules.

What are the deadlines for settlement (ILR) applications?
For most holders, the final date to apply for ILR under this route is 17 February 2028, subject to meeting the qualifying residence period linked to your investment level (£10m for 2 years, £5m for 3 years, £2m for 5 years).

Do I need to maintain my investment until ILR is granted?
Yes. Qualifying investments must be maintained throughout the relevant period. If investments are sold or redeemed, the gross proceeds must be re‑invested in qualifying investments by the end of the next portfolio reporting period and, in any event, within 6 months of sale or redemption (whichever is earlier).

What happens if I fail to maintain or reinvest my qualifying funds on time?
Your application for extension or settlement may be refused. In serious cases, the Home Office may curtail your leave. Breaches can also trigger additional checks on source of funds and personal conduct.

What documents will I need for an extension or ILR?
Typically portfolio reports from a UK‑regulated (FCA/PRA) institution covering the required period, bank/transaction statements evidencing qualifying investments, and confirmation that the portfolio has been maintained at or above the required level in permitted assets.

Are there residence or knowledge requirements for ILR?
Yes. You must meet absence limits, and the Knowledge of Life and Language (KOLL) requirement (Life in the UK Test and English at B1 or above) unless exempt.

What are the main alternatives now that Tier 1 Investor is closed?
There is no direct replacement. Depending on your goals and profile, viable options include Innovator Founder, Global Talent, certain Global Business Mobility routes (e.g., Expansion Worker), Skilled Worker, and family routes where eligible.

Conclusion

The closure of the Tier 1 Investor visa marks the end of the UK’s primary passive investment migration route. While the scheme once provided a relatively straightforward pathway to residence and accelerated settlement for high-net-worth individuals, the government’s focus has shifted to immigration routes that demand active economic contribution and greater scrutiny of applicants’ backgrounds.

For existing Tier 1 Investor visa holders, the key priority is to maintain compliance with the original investment rules and act within the strict deadlines for extension or settlement. The opportunity to remain in the UK under this route is finite, and the Home Office’s transitional arrangements will eventually close entirely.

For those seeking UK residence now, the available alternatives — such as the Innovator Founder visa, Global Talent visa, and certain Global Business Mobility routes — require a more hands-on approach. While these routes differ in structure and requirements, they can still offer pathways to long-term settlement for individuals with the right combination of resources, skills, and commitment to contributing to the UK’s economy.

Being proactive, obtaining professional immigration advice, and ensuring meticulous compliance with Home Office rules will be essential for both current Tier 1 Investor visa holders and those pursuing alternative UK immigration routes.

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Gill Laing

Gill Laing is a qualified Legal Researcher & Analyst with niche specialisms in Law, Tax, Human Resources, Immigration & Employment Law. Gill is a Multiple Business Owner and the Managing Director of Prof Services - a Marketing & Content Agency for the Professional Services Sector.

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