The UK immigration world has seen a lot of change in 2023 and the outlook for 2024 is similarly busy. In this article we recap the key changes in 2023 and consider how they impact the private wealth world in particular and take a look ahead to what we think is coming in 2024.
A look back at 2023
The fallout following the closure of the Investor visa route
Following the closure of the Investor visa route in February 2022, a start date for the proposed replacement route has still not been released. Clients who previously may have relied on this route have had to look instead at other options.
In particular, individuals looking to move to the UK have increasingly considered the following options:
- Skilled Worker route – The UK's main sponsored work visa route, and a route to settlement (permanent residence) in the UK. This route can be used to sponsor a working visa through a UK family office or a UK subsidiary of an overseas company. The UK role must be genuine and sufficiently skilled, and the UK entity must meet various trading tests which means that some initial investment and time commitment is needed.
- Partner visa – An individual with a partner who is either British, Irish or 'settled' in the UK may be eligible to apply for a partner visa allowing them to spend time in the UK. This includes those who are dual nationals.
- Parent of a Child Student visa – For families with children under 12 studying in the UK, this route allows one parent to come to the UK to care for them.
- Global Talent route – This visa route is for 'leaders and potential leaders' in the fields of academia or research, arts and culture, or digital technology. This visa has proved increasingly attractive especially in the tech space for high net worth founders in the absence of the Investor visa, as it offers freedom to work in any job in the holder's field.
- High Potential Individual – This is a useful stepping stone for students who have graduated from an eligible university in the past 5 years. The visa can be a helpful way into, for example, the Skilled Worker or Global Talent routes.
Electronic Travel Authorisation (ETA) scheme
2023 saw the introduction of the UK's ETA scheme in October, which is similar to the United States' ESTA system.
The scheme currently only applies to Qatari nationals but will be expanded to all 'non-visa nationals' over the course of 2024, including US and European nationals.
Everyone who needs an ETA will have to apply for one before travelling to the UK.
Countries added to the visa national list, including Dominica & Vanuatu
In July 2023, the list of countries whose nationals must first apply for a visa to visit the UK before travelling was extended to include Dominica, Honduras, Namibia, Timor-Leste and Vanuatu.
This change means that, where previously passport holders of these countries – including dual nationals – could visit the UK freely without a visa, it is now necessary to go through the process of applying for a visit visa first, which can be a lengthy process.
Important changes for EU Settlement Scheme pre-settled status holders
In September 2023, the Home Office introduced a key change for holders of pre-settled status – a two-year automatic extension of pre-settled status for all holders approaching the end of their permission.
The Home Office also announced that from 2024 it plans to automatically switch pre-settled status holders who are eligible for settled status (indefinite leave to remain) into settled status. However, for those who are eligible to apply for settled status already, we recommend that you apply now to secure proof of your rights.
Looking forward to what's coming in 2024
Higher visa application fees
To start the year off, we are expecting a large increase to the Immigration Health Surcharge on or shortly after 16 January 2024. For those considering making a UK visa application, we recommend submitting the application before this increase if you're able to do so.
This comes just a few months after an increase to most UK visa and nationality application fees of 15-20 per cent in October 2023.
The move to eVisas and a digital immigration system
Visa holders are increasingly moving from holding physical biometric residence permit (BRP) cards as evidence of their UK immigration status, to holding eVisas – a digital immigration status accessible online.
Starting with applicants to the EU Settlement Scheme, the Home Office has expanded this system to transition more people on work visas to eVisas. The process has not been entirely smooth, with many eVisa holders facing technical issues and airlines not being up-to-date with the UK's move towards a digital immigration system.
The major shift to eVisas will come in 2024. Anyone with a UK visa valid beyond the end of 2024 will see that their BRP card is only valid until 31 December 2024. This is because the Home Office plans to move everyone to an eVisa from 2025. We are expecting that the Home Office will provide updates on this transition in 2024.
Changes for students and their families
In a major change for international students starting courses from 1 January 2024, only postgraduate researchers and doctoral candidates will still be able to bring families members to the UK as their dependants. Undergraduates and students studying for 'taught' master's programmes will no longer be able to bring their family. This is an important consideration for anyone looking to study in the UK.
Changes to work visas?
As followers of UK politics will be aware, the UK Government continues to wrestle with the challenge of juggling the need for skilled migration to the UK against reducing high net migration figures. Recent stories have focused on potential changes to the UK immigration system to bring down migration.
The most significant proposals concern changing the work visa rules, with the government announcing on 4 December 2023 that they will raise salary thresholds for the Skilled Worker route from £26,200 to £37,800, and remove the Shortage Occupation List salary discount, which allows employers to pay lower salaries to employees in shortage roles. They have also committed to a significant review and reduction of the professions on the Shortage Occupation List. These changes will be made from "Spring" 2024.
A new investor visa?
With many countries including Portugal and Malta taking steps to tighten up their investment visa programmes, it seems unlikely that a replacement investor visa route will be introduced in the UK in the near future.
If any new route is rolled out, it is likely to concentrate on investors with a track record of successful investment and corporate growth and to require active involvement in the investment process, which will not suit all those in the high net worth client space.
Conclusions
The constant changes in the UK immigration space reflect that immigration remains a political hot potato, with the UK government aiming to find a balance between bringing down migration figures and attracting both investment and talent, while also moving ahead with ambitious plans to digitise the immigration system.
With a general election due in 2025, it will be interesting to see how both the government and the opposition approach their immigration policies, and whether both sides' strategies to grow the economy include plans to make the UK a more attractive place for high net worth clients to live, work and invest.
