Investor visa proposals ahead of the Budget
Proposals for a new UK investor visa have attracted renewed attention ahead of the October Budget. On 18 October, the Economic Times reported, drawing on Bloomberg, that ministers were considering a route to attract wealthy foreign nationals and investment into UK businesses.1
Subsequent reporting suggests an announcement may be further away. The Financial Times reported on 21 October that the route would be left out of the 28 October Budget, citing people briefed on the discussions. The Treasury declined to comment on Budget speculation.2
As at 22 October 2026, published proposals and reported government discussions have yet to produce a new investor route in the Immigration Rules. Applications for a move to the UK must meet the requirements of an available route, while the former Tier 1 (Investor) category remains closed to new applicants.34 Investors considering relocation therefore need to assess the options available for their particular circumstances, including the work they intend to do here.
What could a new UK investor visa involve?
The proposals differ on how much applicants would invest, where the money would go and the tax treatment they would receive.
The Institute for Public Policy Research (IPPR) published its British Business Investment Visa model in July 2026. It recommends investment through a pooled vehicle overseen by the British Business Bank, with funds directed towards innovative and high-growth businesses.5
Under IPPR’s model, applicants would commit £5 million: £3 million initially, followed by £1 million after two and a half years and a further £1 million after five years. Its report suggests a minimum holding period of, for example, 10 years, with returns substantially below market rates. A controlled pilot and checks against illicit finance would form part of the scheme.5
Under IPPR’s proposal, applicants would follow the same residence requirements as other migrants, without accelerated settlement or citizenship.6
A separate model put forward by Foreign Investors for Britain would combine a £2.5 million investment with an annual £200,000 tax payment for up to 15 years, according to the Economic Times report.1 Those terms belong to the lobby group’s proposal and remain subject to any government decision on immigration and tax policy.
For prospective applicants, the detail will determine whether a future route suits their plans. The required investment, permitted activities, family provisions and residence conditions would all need to be confirmed in the government’s own rules.
Why the previous investor visa closed
The Home Office closed Tier 1 (Investor) to new applicants of all nationalities on 17 February 2022 with immediate effect, citing concerns about illegitimately acquired wealth and links to wider corruption.7 Those concerns help explain the attention given to financial checks in proposals for a replacement.
Qualifying existing Tier 1 investors can still apply for settlement, and eligible family members can apply to join them, under the arrangements described on GOV.UK.4 Existing holders should continue to plan around the requirements attached to their permission and their own application deadlines.
Planning a move or investment under the current rules
Investors planning to move to the UK need to consider the role they will perform in the business alongside the financial commitment. Existing business and work routes each have their own requirements.
The Innovator Founder visa may suit an entrepreneur with an endorsed innovative, viable and scalable venture. For a new business application, the applicant must have generated or significantly contributed to the business plan, be the sole founder or an instrumental member of the founding team and take a day-to-day role in carrying out the plan. The other visa requirements also apply.8
Skilled Worker permission may be relevant where a UK company offers an eligible sponsored job that meets the occupation and salary requirements. The role must be genuine: the rules exclude jobs that do not exist, are a sham or have been created mainly to secure immigration permission.9 An investor seeking sponsorship through a company in which they hold shares would still need to meet those requirements.
The funding arrangements also need checking. Under the Skilled Worker salary rules, payments by the applicant to the sponsor or a related organisation, including investments, can be subtracted from the salary used to assess eligibility. A proposed investment therefore needs to be reviewed alongside the salary offered for the sponsored role.9
Companies seeking overseas investment should establish early whether the investor expects to work in the UK business. If the deal depends on their arrival to lead a team or run operations, the parties need to allow time to assess eligibility and obtain the appropriate permission before agreeing a start date.
Meetings and contract negotiations are among the activities permitted for business visitors, subject to the visitor requirements. Visitors must intend to leave at the end of their visit and can undertake work only where the visitor rules expressly permit it. Taking up a role running a UK business requires appropriate permission.10
For investors with flexibility over their relocation date, official announcements will be the next point to watch. Any commitment made in anticipation of a future visa should allow for the possibility that the eventual investment conditions differ from the proposals now being discussed.
DMS Perspective
An investment deal can move ahead while the investor’s immigration arrangements are still being discussed. The difficulty comes when the business has already built its plans around that person’s arrival. Recruitment, management decisions and expansion may all depend on them being able to work in the UK by a particular date.
We would address that dependency during the early commercial discussions. The parties need to agree what the investor will actually do, how much time they expect to spend here and who will take responsibility if their arrival is delayed. A company can then assess the immigration options against a defined role and make realistic arrangements for the intervening period.
The structure of any future route will also deserve close attention. An investor may want to put money directly into a company they know and help it grow. A scheme requiring investment through a designated fund could involve a different use of their capital. The headline investment figure tells only part of the story; the eventual rules will determine how well the visa supports the investor’s plans and the business’s funding needs.
Need Assistance?
DavidsonMorris advises overseas entrepreneurs and UK businesses on immigration options for establishing and running a business in the UK. We can review the investor’s proposed role, assess eligibility under existing routes and advise on endorsement, sponsorship and application requirements.
To discuss immigration arrangements for a planned investment or business expansion, contact us or book a fixed-fee telephone consultation to discuss your options and circumstances with one of our UK immigration advisers.
Source References
| Resource | URL |
|---|---|
| 1. The Economic Times, United Kingdom considers a new investor visa for wealthy foreigners ahead of the October budget, 18 October 2026. Reporting of proposals, not legal authority. | Economic Times report |
| 2. Financial Times, John Healey to quash visa hopes for wealthy in UK Budget, 21 October 2026. Attributed reporting, not a formal government announcement. | Financial Times report |
| 3. Home Office, Immigration Rules and statement of changes collection, checked 22 October 2026. | Current Immigration Rules Statements of changes |
| 4. GOV.UK, Investor visa (Tier 1): Overview, checked 22 October 2026. Closure to new applicants and position of qualifying existing holders. | Tier 1 (Investor) overview |
| 5. IPPR, The British business investment visa: A new model for investment migration in the UK, July 2026, printed pages 5–6. Policy recommendations. | IPPR report (PDF) |
| 6. IPPR, New visa for investors could add up to £900 million to UK economy, 9 July 2026. Proposed residence and settlement treatment. | IPPR announcement |
| 7. Home Office, Tier 1 Investor Visa route closes over security concerns, 17 February 2022. | Home Office closure announcement |
| 8. Home Office, Immigration Rules Appendix Innovator Founder, particularly INNF 8.2–8.3, checked 22 October 2026. | Appendix Innovator Founder |
| 9. Home Office, Immigration Rules Appendix Skilled Worker, particularly SW 4.1–4.4, SW 5.1–5.5, SW 6.1 and SW 14.2A, checked 22 October 2026. | Appendix Skilled Worker |
| 10. Home Office, Immigration Rules Appendix Visitor: Permitted Activities, PA 4; Appendix V: Visitor, V 4.2 and V 4.4; and GOV.UK business visitor guidance, checked 22 October 2026. | Business visitor guidance Permitted Activities, PA 4 Appendix V: Visitor |
