close menu

Investors out, innovators in: UK Tier 1 visas set to change

by Gary Kockott | Feb 19, 2019
  • UK Tier 1 visa categories are under scrutiny after a surprise announcement on 6 December 2018 stated that the Tier 1 Investor route would be suspended. It was said that this route would no longer be open for applications, from 7 December 2018, and that new rules will be put in place sometime in 2019. The UK wants to crack-down on organised crime abusing the system for citizenship and encourage immigrants who will contribute to the economy.
    UK Tier 1 visas set to change

    The Tier 1 (Investor) Visa: is it suspended?

    Since releasing the alarming statement that the Investor route would be suspended with near immediate effect, the Home Office has done a 180-degree turn and reported that “The Tier 1 (Investor) visa is not currently suspended. However, the government remains committed to reforming the route. A further announcement will be made in due course. Any suspension would be implemented through changes to the immigration rules.”

    Meet the new Tier 1 visa routes

    A new innovator route is set to replace the Tier 1 (Entrepreneur) route in a bid to create jobs and drive economic growth. There are currently few details on this new category. In the Statement of Changes, UK immigration minister Catherine Nokes referred to how this revision would complement the new Start-up visa route, which was announced in June 2018.

    The most welcome change that we know about is that the assessment of a business plan will be done by a “business sponsor” and not a Home Office caseworker. In the past, these caseworkers – often with limited business knowledge - have misunderstood applicants’ business plans and denied applications.

    More emphasis on innovative business

    When interviewing applicants for the Tier 1 visa, caseworkers have relied on scripts for the Genuine Entrepreneur Test. This approach has been scrutinised and led to questions around whether Home Office caseworkers are best suited to predict the success or failure of a business. It made it difficult for applicants who wanted to pursue an opportunity in an area that’s new to the market. Business sponsors will assess business ideas on “innovation, viability and scalability”. You will need to show that your business idea is viable and that you have the relevant qualifications and experience to make it a success.

    These new visa routes are likely to create opportunities in the UK for foreign entrepreneurs. Currently, only 52% of applications are successful, and in the light of Brexit, it seems inconceivable that the UK Government would introduce a scheme which would limit new business ideas and investment from overseas. We have high hopes that the new schemes will have a higher take-up rate than the previous.

    When will the changes to the entrepreneur category come into effect?

    No date of implementation has been announced. However, Nokes’ Statement of Changes does refer to spring 2019. We, therefore, encourage applicants who still want to apply under the Tier 1 entrepreneur route to contact us without delay. 

    What about those already in the UK on entrepreneur visas?

    When a category closes, there’s commonly a period where people who have already entered can extend their stay or apply for indefinite leave to remain (ILR). For example, the Tier 1 (General) route was closed to new applicants in 2011 and closed for extensions in 2015 but only closed for ILR applicants in 2018.

    Individuals already in the category, or whose applications were still in process when the route was closed, were given seven years to complete the five-year period necessary to obtain ILR. It’s likely that similar provisions will be in place for the entrepreneur route.

    I was planning to make an application, what should I do now?

    With so little information, it’s impossible to advise as to the best route for you in the future. If you currently meet the requirements for the entrepreneur visa, then we recommend you get your application in as soon as possible.


    We’ve been helping people emigrate and start life in the UK for over 20 years. Get in touch with our experienced advisors if you’re looking to prepare your application before the category closes. You can contact us via email on immigration@sableinternational.com or give us a call on +44 (0) 20 7759 5330.

    We are a professional services company that specialises in cross-border financial and immigration advice and solutions.

    Our teams in the UK, South Africa and Australia can ensure that when you decide to move overseas, invest offshore or expand your business internationally, you’ll do so with the backing of experienced local experts.

    • Oxford-street
      Everything you ever wanted to know about applying for a UK Tier 2 (General) visa
      Jul 18, 2019  |  by John Dunn
    • Australia skyline
      Landed a temporary job Down Under? Get an Australian working holiday visa
      Jul 08, 2019  |  by Guest writer
    • sydney-australia
      Australian visa processing times: How long you’ll wait for approval
      Jun 27, 2019  |  by Sam Hopwood
    • British passport and citizenship approved
      British citizenship and indefinite leave to remain: Why you need to know the difference
      Jun 25, 2019  |  by John Dunn
    • seven-corners-image
      The importance of purchasing travel insurance with a Tier 4 UK student visa
      Jun 13, 2019  |  by Guest writer
    • kangaroos
      Two new Aussie visa routes for skilled migrants
      May 23, 2019  |  by Sam Hopwood
    • Passport-stamp
      25% of UK spouse visa applications are refused every year – make sure yours isn’t one
      Apr 02, 2019  |  by Sam Hopwood
    • UK flag with calculator
      How to calculate your costs before you immigrate to the UK
      Mar 29, 2019  |  by John Dunn
    • businessman multitasking
      Everything we know about the new Tier 1 Innovator visa
      Mar 29, 2019  |  by John Dunn
    • british moving van
      Shipping household goods from South Africa to the UK, what you need to know
      Mar 29, 2019  |  by Leanne Shrosbree
     
     

    South Africa

    Cape Town

    Regent Square
    Doncaster Road
    Kenilworth 7708 +27 (0) 21 657 2120

    Durban

    25 Richefond Circle
    Ridgeside
    Umhlanga 4320 +27 (0) 31 536 8843

    United Kingdom

    Croydon

    One Croydon
    12-16 Addiscombe Road
    Croydon CR0 0XT +44 (0) 20 7759 7514

    Australia

    Melbourne

    9 Yarra Street
    South Yarra
    VIC 3141 +613 (0) 8651 4500

    Sable International is a trading name of 1st Contact Money Limited (company number 07070528), registered in England and Wales. We are authorised and regulated by the Financial Conduct Authority in the UK (FCA no. 517570), the Financial Services Conduct Authority in South Africa (1st Contact Money [PTY] Ltd - FSP no. 41900) and hold an Australian Financial Services Licence issued by ASIC to deal in foreign exchange (1st Contact Group - AFS Licence number 335 126).

    We use cookies to provide the best website experience for you. Using this website means that you agree to this. How we use cookies.