In recent months, the question of whether the United Kingdom should revive a form of the investor visa has entered political and public debate with renewed vigour. Against the backdrop of the government’s drive to curb net migration and ongoing fiscal pressures, a coalition of Conservative-leaning members of the House of Lords, along with industry figures and investor groups, have intensified calls for a modernised investor visa designed to channel capital directly into public services and infrastructure.

This push crystallised during a 2025 discussion in the House of Lords, where influential voices highlighted a growing concern: the continued flight of capital and high-net-worth talent from the UK. Proposals centre on a new visa requiring a minimum investment of £2.5 million, paired with significantly enhanced due diligence and oversight compared to the former regime. Advocates argue that carefully designed immigration incentives can still attract meaningful investment—provided lessons from the past shape any future framework.

Learning from the Past: The Tier 1 Investor Visa Legacy

The Tier 1 Investor visa was once a cornerstone of the UK’s high-value migration policy, offering a route for individuals willing to invest £2 million or more in qualifying UK assets. Larger investments allowed for accelerated settlement, with Indefinite Leave to Remain possible after two years for £10 million, three years for £5 million, and five years for £2 million.

Following its closure in 2022, existing holders were granted transitional arrangements, including extensions until February 2026 and settlement applications by February 2028, subject to maintaining qualifying investments in FCA-regulated vehicles and meeting residence and integration requirements.

However, the closure reflected persistent concerns. The route was criticised for weak scrutiny of source of funds and limited demonstrable economic benefit. Investments could be placed in low-risk assets such as government bonds, withdrawn after settlement, and did not require job creation or regional impact. Critics argued that the visa underperformed for the UK while leaving vulnerabilities to financial misconduct.

New Proposals: What Would Change?

Momentum for a revamped investor visa is accompanied by a markedly different compliance mindset. Proposals emphasise independent and transparent verification of source of wealth, moving beyond reliance on bank letters or self-declarations. The objective is to ensure capital is not only legitimate but demonstrably beneficial to the UK economy.

Further proposals suggest mandatory investment into pre-approved funds or vehicles, potentially overseen by institutions such as the British Business Bank. Withdrawal of funds would only be permitted once settlement is achieved, aligning investors’ interests with long-term policy objectives.

Advocates also call for public reporting on economic outcomes, including job creation, business growth, and sectoral impact. This reflects a shift away from passive capital placement toward active, accountable investment. More broadly, proposals seek closer coordination between immigration, tax, and financial regulation to provide predictability and restore confidence after years of abrupt policy change.

Countervailing Policy Winds: Migration Tightening and Exit Taxes

Paradoxically, renewed interest in an investor route coincides with a tightening of UK migration policy. From January 2026, English language requirements for key work and talent visas rise to B2 CEFR, alongside stricter eligibility thresholds. Dependant rights are narrowing, and a new earned settlement model is set to extend pathways to Indefinite Leave to Remain to at least ten years for many migrants.

Compounding this, the abolition of the non-domiciled tax regime and discussions around a potential 20 percent exit tax have heightened perceptions of fiscal unpredictability. Critics argue that these measures risk discouraging precisely the mobile capital and talent the UK seeks to attract, strengthening arguments for a carefully structured investor visa as a tool of economic diplomacy.

Alternatives and the New Spirit of UK Business Migration

In the absence of an investor-specific route, the UK has sought to attract entrepreneurial talent through the Innovator Founder visa. This pathway prioritises innovation, scalability, and business viability over sheer capital contribution, with endorsement from approved bodies and the possibility of settlement after three years.

While effective for founders with operational involvement and novel ideas, this route does not fully address the needs of high-net-worth individuals whose primary contribution is capital rather than direct business management. Although fast-track residency for high earners has emerged, it has not yet evolved into a comprehensive investor migration framework.

The Road Ahead: Will a New Investor Visa Emerge?

The renewed interest in a tightly regulated investor visa reflects a fundamental tension in UK migration policy: balancing economic necessity with public confidence, transparency, and control. The emergence of safeguarded, impact-focused proposals suggests growing recognition that the UK must remain competitive in attracting global capital, but on more rigorous terms than in the past.

Whether such proposals translate into policy remains uncertain. With the government focused on reducing headline migration figures and stabilising the system after years of reform, investor migration may not be an immediate priority. Nevertheless, as international competition for high-value residents intensifies, a well-designed investor visa could re-emerge—offering a renewed social contract between investors and the UK.

About the Author

Gary McIndoe is the Founder and Managing Partner of Latitude Law. Under his leadership, the firm has grown into a multi-jurisdictional practice of 14 lawyers across Manchester, London, and Brussels, advising clients throughout Europe and globally on immigration, mobility, and strategic residence planning.