Investor Visa Proposal Gains Momentum

UK lawmakers are calling on the government to introduce a £2.5 million investor visa to stem capital flight and channel funds into infrastructure and public services. The initiative comes alongside debates over a proposed 20% exit tax on departing residents, which could intensify migration of wealthy individuals.

A pre-Budget summit at the House of Lords brought together lawyers and investor advisors to make the case for a revival of the investor visa. Recommendations included:

• Mandatory investments into British Business Bank–approved funds until Indefinite Leave to Remain (ILR) is achieved.
• Annual independent enhanced due diligence on applicants, including source-of-wealth verification.
• Full transparency on economic outcomes, such as jobs created and investment impact.
• Alignment with UK tax and immigration regulations to ensure long-term compliance.

Explore strategic UK investment options with Free From Borders

Capital Flight Concerns

The abolition of the UK’s non-domicile regime in 2024 and plans for a 20% exit tax have already triggered significant departures. Nearly 11,000 millionaires left the UK in 2024, with forecasts suggesting an additional 16,500 could leave by the end of 2025.

Leslie MacLeod-Miller, CEO of Foreign Investors for Britain, emphasized that these departures threaten the Treasury’s revenue and the broader economy. “Trying to plug the fiscal gap with ever-higher levies only accelerates disaster,” he warned, highlighting the urgent need for investor-friendly policy.

Economic and Policy Implications

Research from Oxford Economics estimates the non-dom reforms, particularly extending inheritance tax to non-UK assets, could reduce government revenue by approximately £1 billion annually.

The proposed investor visa is framed as a “critical lifeline” to attract internationally mobile capital, especially as the government seeks new revenue sources without deterring high-net-worth investors. Experts stress that careful structuring—balancing due diligence, investment thresholds, and economic transparency—will be essential to its success.

Strategic Takeaways for Investors

High-net-worth individuals should consider global residency and citizenship options to safeguard wealth and maintain mobility in light of evolving UK tax and immigration rules. Programs in Europe, the Caribbean, and the Gulf offer alternative avenues with strategic tax and residency benefits.

Learn more about high-net-worth investor programs with Free From Borders