The Tier 1 Investor visa is closed to all new applications. To discuss your UK visa options, contact our business immigration specialists.
The Tier 1 Investor visa was one of the UK’s most high-profile immigration routes, offering wealthy individuals a way to secure residency through substantial financial investment. While the visa was permanently closed in February 2022, interest in the category remains high among those exploring routes into the UK through investment or business. Many still want to understand what the scheme offered, why it was withdrawn and what alternatives now exist for high-net-worth individuals seeking residence, settlement and eventual citizenship.
This article explains the history of the visa, the reasons for its closure and the current immigration pathways that investors should now consider.
Section A: What Was the Tier 1 Investor Visa?
The Tier 1 Investor visa was designed as a route for high-net-worth individuals to secure residence in the UK through substantial financial investment. It was launched in 2008 to encourage inward investment and to strengthen the UK’s global reputation as a destination for international capital. The scheme quickly became associated with wealthy individuals and families looking to combine investment with relocation, often with long-term goals of settlement and citizenship.
1. Eligibility Requirements
Applicants were required to demonstrate access to at least £2 million in available and transferable funds. These funds needed to be under the applicant’s control, held in a regulated financial institution, and capable of being invested in the UK. Proof of the lawful source of funds was also required, with applicants expected to show clear documentation to satisfy Home Office checks. Unlike other visa categories, the Tier 1 Investor route did not require English language ability or maintenance funds, reflecting its focus on financial contribution rather than integration at the outset.
2. Investment Rules
Once approved, visa holders were required to invest their qualifying funds within three months of entry to the UK. Permitted investments included share capital or loan capital in active and trading UK companies. Investment in government bonds was initially allowed but later excluded from the scheme due to concerns about passive investment not delivering wider economic benefit. Investment in offshore companies or property development was not permitted, and strict monitoring applied to ensure compliance with the qualifying rules.
3. Length of Stay and Settlement Pathway
The Tier 1 Investor visa was initially granted for three years and four months, with the option to extend for a further two years if the investment rules continued to be met. The scheme also offered an accelerated route to indefinite leave to remain depending on the level of investment. Standard settlement was available after five years, but this could be reduced to three years for those investing £5 million or to two years for investments of £10 million. After holding indefinite leave to remain for at least twelve months, applicants could then apply for British citizenship subject to residence and good character requirements.
4. Rights and Benefits
Tier 1 Investor visa holders were permitted to live, work, and study in the UK without restriction. Family members, including partners and children under 18, could join as dependants and were granted full rights to work and study. The visa provided a high degree of flexibility compared with other routes, as it did not tie the individual to a sponsoring employer or require an endorsement. It was therefore regarded as an attractive option for wealthy applicants seeking stability, mobility, and a clear path to long-term residence in the UK.
Section B: Why Was the Tier 1 Investor Visa Closed?
The Tier 1 Investor visa was formally closed to new applicants on 17 February 2022. The Home Office announced the closure with immediate effect, citing concerns about the scheme’s integrity and its potential misuse. While the visa had been promoted as a way to attract international wealth and stimulate the UK economy, over time it became the subject of sustained criticism and scrutiny.
A key factor behind the closure was the level of concern about the origin of investment funds. The route attracted applicants from a wide range of jurisdictions, but Home Office investigations highlighted risks of funds being linked to corruption, organised crime, or unlawful activities overseas. There was particular focus on the limited checks in the early years of the route, when applications were often approved with minimal scrutiny of the provenance of wealth.
The government stated that the scheme created risks to national security by enabling individuals of concern to acquire UK residency. Case reviews indicated that some applicants posed potential security threats or reputational risks to the UK. The existence of a visa route effectively allowing residency in exchange for wealth was increasingly seen as inconsistent with the government’s broader immigration and security priorities.
Another driver of reform was the assessment that the scheme delivered limited benefit to the wider UK economy. Although billions of pounds were invested through the visa, much of this went into low-risk investments such as government bonds, which did not stimulate job creation or innovation. Even after government bonds were excluded, critics argued that the route provided little evidence of significant economic growth or tangible benefits beyond capital inflows.
The closure also reflected a broader shift in UK immigration policy away from passive investment and towards active contribution through business innovation, job creation, and specialist skills. The government signalled its intention to replace reliance on financial wealth with visa categories that encourage innovation, entrepreneurship, and professional expertise. This approach aligns with the introduction of visas such as the Innovator Founder and Global Talent routes.
Although the scheme closed to new applicants, those who already held a Tier 1 Investor visa were permitted to extend their stay and apply for settlement if they continued to meet the investment requirements. The Home Office confirmed that these transitional rights would remain available until 2026, after which no further applications under the category will be possible. This ensured that existing investors were not disadvantaged, while closing the door to new applicants permanently.
Section C: Options for Former Tier 1 Investor Visa Holders
Although the Tier 1 Investor visa is closed to new applicants, individuals who already held permission under the route were given transitional provisions. These provisions allow existing visa holders and their families to continue their progression toward settlement, provided they meet the investment and residence conditions. The scheme is therefore in a managed wind-down phase rather than an immediate termination for all participants.
1. Extensions for Existing Visa Holders
Tier 1 Investor visa holders can apply for extensions until 17 February 2026. An extension is only available if the applicant continues to meet the required investment rules and can demonstrate that their funds remain invested in qualifying UK businesses. The extension period is typically two years, allowing time to complete residence requirements for settlement. Dependants are also eligible to extend in line with the main applicant if they remain part of the household and meet general immigration requirements.
2. Indefinite Leave to Remain
Settlement remains possible for Investor visa holders until 17 February 2028. Applicants can apply for indefinite leave to remain provided they have maintained their qualifying investments, met the required residence periods, and complied with immigration conditions. Accelerated settlement rules based on higher investment levels continue to apply under the transitional arrangements. Dependants can also apply for indefinite leave to remain if they meet the relevant continuous residence requirements.
3. British Citizenship
Once indefinite leave to remain has been granted, Investor visa holders can progress to British citizenship through naturalisation, subject to residence rules and good character requirements. This includes spending no more than 90 days outside the UK in the final 12 months before the citizenship application, passing the Life in the UK Test, and meeting English language requirements. Citizenship applications are available to dependants as well as the main applicant once indefinite leave to remain has been secured.
4. Strategic Considerations
For investors still in the route, careful planning is required to ensure compliance until the final deadlines in 2026 and 2028. Missing extension or settlement cut-off dates will leave no option to remain under this category. Applicants should maintain detailed investment records, ensure continuous residence requirements are met, and prepare early for indefinite leave to remain applications to avoid last-minute complications. Dependants should also review their own residence timelines to confirm they are eligible to apply in line with the main applicant.
Section D: Current UK Immigration Options for Investors
There is no direct replacement for the Tier 1 Investor visa. Instead, the UK now offers a range of alternative immigration routes that reflect a policy focus on innovation, entrepreneurship, and skilled contribution rather than passive capital. High-net-worth individuals who wish to establish residence in the UK will therefore need to consider other visa categories that align with their background, objectives, and long-term plans.
1. Innovator Founder Visa
The Innovator Founder visa is the closest alternative to the former investor route, although its criteria are very different. Rather than requiring a fixed level of investment, applicants need to present an innovative, viable, and scalable business plan that has been endorsed by an approved endorsing body. While investment capital is usually required, there is no minimum threshold. The emphasis is on creating genuine economic value in the UK through innovation, job creation, and business growth. The visa offers a clear route to settlement after three years if the endorsed business meets the Home Office’s success criteria.
2. Global Talent Visa
For individuals with exceptional achievements or potential in fields such as science, technology, arts, and culture, the Global Talent visa provides an attractive option. Although not an investment visa, it can appeal to wealthy applicants who also hold a distinguished profile in their professional field. The visa is endorsement-based, highly flexible, and offers a route to settlement after three or five years depending on the applicant’s record of achievement. Family members can also join under this route.
3. Skilled Worker Visa for Senior Executives
Some investors may be more suited to entering the UK under an employment-based visa. The Skilled Worker route enables UK employers with a sponsor licence to hire overseas talent in eligible roles that meet minimum salary thresholds. For senior executives or directors in multinational organisations, sponsorship may provide a practical option for residence, especially when combined with investment or expansion of corporate operations in the UK.
4. Global Business Mobility Routes
The Global Business Mobility category offers several sub-routes that can be relevant to investors and business owners. These include the Senior or Specialist Worker visa for overseas staff transferring to a UK branch, and the Expansion Worker visa for businesses setting up a first UK presence. While not designed as investment visas, these routes support international expansion and can serve as a stepping stone to longer-term residence options.
5. Other Options
Investors with UK family connections may also explore the Partner or Family visa routes, while those studying at UK institutions could enter through the Student visa with a view to switching later into a business or work route. In addition, high-net-worth individuals who do not require immediate settlement may use the Standard Visitor visa for business purposes, although this does not grant residence or long-term rights. Strategic consideration of personal circumstances, wealth planning, and immigration objectives will be central to choosing the most suitable pathway.
Section E: Comparing Tier 1 Investor with Current Routes
The closure of the Tier 1 Investor visa marked a decisive shift in UK immigration policy. Where the old scheme allowed entry primarily through personal wealth, today’s alternatives demand evidence of innovation, professional achievement, or sponsorship. For high-net-worth individuals, this change means that access to UK residence is no longer achieved by investment alone but by contribution through skills, business activity, or recognised talent.
1. Investment Thresholds
The Tier 1 Investor visa had clear financial benchmarks: a minimum of £2 million with accelerated settlement for higher sums. No equivalent thresholds exist today. The Innovator Founder visa requires investment appropriate to the endorsed business plan, but there is no set amount. As a result, applicants cannot rely solely on available capital; they need to present a business with substance and growth potential.
2. Application Criteria
The Investor visa was unusual in that it did not require English language ability or evidence of integration. By contrast, all current long-term visa routes require language ability, compliance with financial maintenance rules, and a demonstration of genuine intent. This makes today’s system more restrictive and more focused on long-term integration and contribution.
3. Economic Contribution
Investor visa holders contributed primarily through passive capital. Current routes demand active participation in the UK economy, whether by building innovative businesses, undertaking senior professional roles, or contributing recognised expertise in a specialist field. The policy direction is towards visas that create jobs and drive economic development rather than simply importing wealth.
4. Settlement Timelines
The Investor route offered accelerated settlement of two or three years with higher levels of investment. Today’s fastest pathway is the Innovator Founder visa, where settlement is available after three years if the business meets the Home Office’s criteria. Other routes, such as Global Talent, may also lead to settlement in three years for exceptional applicants. For most others, five years remains the standard timeline.
5. Strategic Considerations for Investors
The differences between the old and new system underline the importance of aligning personal goals with the right visa route. Investors who previously relied on wealth alone now need to demonstrate either innovation, expertise, or sponsorship. Careful evaluation of current and future plans is required to choose the visa that not only secures residence but also supports long-term objectives such as settlement and citizenship. Wealth remains relevant but cannot stand alone as the determining factor.
Section F: Settlement and Long-Term Residency Options
While the Tier 1 Investor visa offered accelerated settlement routes, today’s alternatives provide more structured pathways that focus on integration and contribution. Settlement, known as indefinite leave to remain, is central for investors and their families who want long-term security in the UK. Each route has its own requirements, and timing plays a key role in planning when to apply.
1. Settlement under Current Routes
The Innovator Founder visa allows settlement after three years if the endorsed business has achieved Home Office criteria such as job creation, revenue growth, or significant market presence. The Global Talent visa can also lead to settlement after three years for those recognised as leaders in their field, while most other applicants qualify after five years. The Skilled Worker and Global Business Mobility routes generally require five years of continuous residence before an indefinite leave to remain application can be made.
2. Residence Requirements
Regardless of the visa category, applicants need to show continuous residence in the UK. This usually means spending no more than 180 days outside the UK in any 12-month period during the qualifying years. Dependants are also subject to residence requirements, so families should plan absences carefully to ensure all members can qualify for indefinite leave to remain at the same time. Breaks in residence or extended time overseas can delay eligibility.
3. Transition from Settlement to Citizenship
Once indefinite leave to remain is secured, applicants can move on to British citizenship after holding settlement for at least 12 months. Citizenship applications require evidence of good character, language ability, and knowledge of life in the UK, in addition to residence requirements. Dependants, including children, may also be eligible to apply depending on their immigration history and residence record. This pathway ensures that investors and their families who have built their lives in the UK can secure permanent status and full citizenship rights.
4. Strategic Planning for Long-Term Goals
High-net-worth individuals considering UK residence today need to think beyond the entry visa. The current immigration system places equal emphasis on integration, contribution, and compliance with residence requirements. Planning for absences, monitoring progress against business or talent criteria, and ensuring dependants remain eligible are all essential steps to avoid delays or refusals. Early preparation for indefinite leave to remain and citizenship allows families to transition smoothly from temporary status to permanent residence and, ultimately, British nationality.
Section G: Summary
The Tier 1 Investor visa played a significant role in attracting high-net-worth individuals to the UK for more than a decade. Its closure in 2022 reflected concerns about the origin of funds, national security, and the limited wider economic benefit of passive investment. For existing visa holders, transitional arrangements remain in place, but for new applicants the door has closed permanently.
Today’s UK immigration landscape prioritises innovation, entrepreneurship, and professional expertise. Investors who want to secure long-term residence must align their plans with routes such as the Innovator Founder or Global Talent visa, where contribution is measured through business impact and personal achievement rather than financial capital alone. Strategic planning is now vital to ensure that investment objectives also meet the Home Office’s immigration requirements, allowing individuals and their families to build secure futures in the UK.
Section H: Need Assistance?
To understand your visa and immigration options as an investor, contact our UK immigration specialists.
Section I: FAQs
Can I still apply for a Tier 1 Investor visa?
No. The Tier 1 Investor visa closed permanently to new applications on 17 February 2022. There is no direct replacement route, although alternatives such as the Innovator Founder and Global Talent visas are available.
What happens if my Tier 1 Investor visa is expiring?
Current visa holders can apply for an extension until 17 February 2026 if they continue to meet the investment rules. Indefinite leave to remain applications will be accepted until 17 February 2028, after which the route will be closed entirely.
Is there a direct replacement for the Tier 1 Investor visa?
No. The government has shifted policy away from residency based solely on wealth. Current routes require applicants to demonstrate innovation, business activity, or professional expertise rather than simply meeting an investment threshold.
What is the best UK visa option for investors now?
The Innovator Founder visa is often the most suitable for investors, as it allows individuals to use capital to build innovative UK businesses. However, eligibility depends on endorsement of the business idea rather than the amount of money invested. Other routes, such as Global Talent or Skilled Worker, may be more appropriate depending on personal circumstances.
How much investment is needed to move to the UK today?
There is no set figure under current visa categories. The Innovator Founder visa does not have a prescribed investment threshold, although sufficient funds are expected to deliver the business plan. Applicants should be prepared to show credible financial resources aligned with their visa application rather than relying on a fixed investment requirement.
Section J: Glossary
| Term | Definition |
|---|---|
| Accelerated Settlement | A faster route to indefinite leave to remain based on higher investment levels, previously available under the Tier 1 Investor visa. |
| Dependants | Family members, typically a partner or children under 18, who can apply to join the main visa holder in the UK with equivalent rights to live, work, and study. |
| Endorsing Body | An organisation approved by the Home Office to assess and endorse applications for the Innovator Founder visa, ensuring the business plan meets required standards. |
| Global Talent Visa | A UK immigration route for individuals with exceptional talent or promise in fields such as science, technology, arts, and culture, offering flexible residence and settlement options. |
| Indefinite Leave to Remain (ILR) | Permanent residence in the UK, allowing the holder to live, work, and study without time restrictions and serving as a step towards British citizenship. |
| Innovator Founder Visa | A visa for entrepreneurs seeking to establish innovative businesses, requiring endorsement but no set investment threshold, with a pathway to settlement. |
| Investment Funds | The capital that applicants were required to hold and invest in order to qualify for the Tier 1 Investor visa, subject to strict eligibility and compliance checks. |
| Settlement | Another term for indefinite leave to remain, granting long-term residence rights in the UK after meeting residence and compliance requirements. |
| Transitional Provisions | Rules allowing existing Tier 1 Investor visa holders to extend their stay or apply for settlement up until specified deadlines, despite the closure of the route to new applicants. |
Section K: Additional Resources and Links
| Resource | Type | URL |
|---|---|---|
| Gov.uk – Tier 1 Investor Visa (Archived) | Official Guidance | https://www.gov.uk/tier-1-investor-visa |
| Gov.uk – Innovator Founder Visa | Official Guidance | https://www.gov.uk/innovator-founder-visa |
| Gov.uk – Global Talent Visa | Official Guidance | https://www.gov.uk/global-talent |
| Gov.uk – Skilled Worker Visa | Official Guidance | https://www.gov.uk/skilled-worker-visa |
| Gov.uk – Global Business Mobility | Official Guidance | https://www.gov.uk/global-business-mobility |
| Gov.uk – Indefinite Leave to Remain | Official Guidance | https://www.gov.uk/indefinite-leave-to-remain |
Author
Founder and Managing Director Anne Morris is a fully qualified solicitor and trusted adviser to large corporates through to SMEs, providing strategic immigration and global mobility advice to support employers with UK operations to meet their workforce needs through corporate immigration.
She is recognised by Legal 500 and Chambers as a legal expert and delivers Board-level advice on business migration and compliance risk management as well as overseeing the firm’s development of new client propositions and delivery of cost and time efficient processing of applications.
Anne is an active public speaker, immigration commentator, and immigration policy contributor and regularly hosts training sessions for employers and HR professionals.
