The UK government’s immigration policy has reached a critical juncture.
Whilst the recently published white paper “Restoring control over the immigration system” claims to attract talent and wealth to Britain, the reality facing high-net-worth individuals tells a different story. Combined with the abolition of the non-domicile tax regime, these changes are creating a perfect storm that threatens the UK’s competitiveness as a destination for global capital.
As a barrister who regularly advises HNW clients on immigration matters, I am witnessing unprecedented uncertainty among those considering relocating to the UK. The government’s approach pulls in contradictory directions, claiming to welcome investment whilst simultaneously making the immigration system more complex and unwelcoming.
The death of the investor route
The closure of the tier one investor visa in February 2022 marked a watershed moment. This route, requiring a minimum £2mn investment, was abruptly terminated due to concerns over financial security and illicit wealth. The manner of closure, without adequate replacement mechanisms, sent a clear signal: the UK was no longer open for business.
The innovator founder visa requires endorsement from approved bodies for “innovative” business concepts. The global talent visa caters to a narrow cohort. For HNW individuals seeking straightforward investment-based immigration routes, the options have in effect disappeared.
Previously, advisers could structure client portfolios with confidence that UK residency was achievable through investment. Now, advisers must navigate a much more uncertain landscape when counselling clients on UK exposure and tax planning strategies.
White paper’s false promise
The May 2025 white paper’s stated aim to “supercharge UK growth in key sectors” rings hollow.
The proposed extension of the settlement period from five to 10 years represents a fundamental shift that will deter long-term investment. HNW individuals are increasingly mobile, and the prospect of a decade-long commitment before achieving settled status is proving to be a significant deterrent.
The proposed “earned settlement” system adds another layer of complexity. When clients ask me to predict their long-term immigration prospects, I find myself unable to provide the certainty that investment decisions require.
Non-dom tax catastrophe
The abolition of the non-domicile tax regime from April 2025 has created a parallel crisis. The replacement, the foreign income and gains (Fig) regime, offering only four years of relief for newcomers, represents a dramatic reduction in the UK’s tax competitiveness.
When wealthy individuals can choose between multiple jurisdictions offering more favourable tax regimes, the UK’s proposition has become significantly less attractive.
Financial advisers must now factor these changes into their recommendations. The four-year Fig regime creates artificial planning horizons that may not align with clients’ actual investment timescales or family circumstances.
International competition
The UK’s deteriorating position becomes stark when compared with competitor jurisdictions. Portugal’s golden visa programme continues to offer clearer pathways to residency; Singapore’s tech pass provides streamlined access for entrepreneurs and investors; the UAE’s golden visa programme offers 10-year residency with minimal bureaucracy.
Financial advisers must now maintain expertise across multiple jurisdictions to provide comprehensive advice to mobile HNW clients.
Cost of complexity
The UK immigration system has become unnecessarily complex. The decision to maintain different skill thresholds for different visa categories, the multiplication of English language requirements, and the creation of multiple assessment frameworks creates a system that even experienced practitioners struggle to navigate efficiently.
This complexity disproportionately affects HNW individuals, who value their time highly and expect professional service standards. For financial advisers, this translates into higher advice costs, longer planning timescales, and greater uncertainty around outcomes.
Practical implications for financial advisers
Financial advisers must now factor immigration uncertainty into their planning recommendations. Previously, advisers could assume that wealthy clients could obtain UK residency relatively straightforwardly. This assumption no longer holds.
Advisers must counsel clients on the risks of immigration policy changes mid-strategy, the potential for retroactive application of new rules, and the need for contingency planning across multiple jurisdictions. The integration of immigration and tax planning has become exponentially more complex, requiring co-ordination with increasingly specialised external counsel.
The immigration uncertainty is also affecting property markets, particularly at the high end where international buyers have traditionally been significant participants.
What needs to change
First, the government must acknowledge that immigration policy and economic policy are inseparable. The current approach treats immigration as primarily a matter of population control rather than economic development.
Second, the UK needs a coherent investor immigration strategy. The closure of the investor visa without adequate replacement has left a crucial gap.
Third, the settlement timeline extension to 10 years must be reconsidered. Five years represents the international standard, providing sufficient time to assess integration whilst remaining attractive to mobile capital.
Fourth, the government must commit to policy stability. The retrospective application of immigration changes fundamentally undermines confidence in the UK as a destination for long-term investment.
Looking forward
The evidence from my practice suggests that the current trajectory is unsustainable. Clients who previously viewed the UK as their preferred base for international operations are increasingly looking elsewhere.
For financial advisers, this trend requires a fundamental reassessment of how they approach international clients. The assumption that the UK represents the optimal base for international wealth management can no longer be taken for granted. Advisers must develop expertise in alternative jurisdictions and be prepared to recommend strategies that may not include UK residence as a central component.
The consultation processes following the white paper provide an opportunity for course correction. However, meaningful change will require the government to acknowledge that its current approach is failing to achieve its stated objectives.
Financial advisers working with international clients should prepare for continued uncertainty and develop contingency strategies that do not rely on UK immigration policy becoming more favourable.
The choice is clear: the UK can either compete effectively for international wealth or watch it migrate to more welcoming shores.
Ben Keith in a barrister at 5 St Andrew’s Hill and International Human Rights Advisors