The UK government is considering the launch of a new investor visa to attract high-net-worth individuals prepared to fund key sectors like artificial intelligence, life sciences, and clean energy. Still in the proposal stage, the plan signals a strategic shift in how the UK approaches economic migration, with an emphasis on innovation and national interest.

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This proposal follows the closure of the previous Tier 1 (Investor) visa route in 2022, which was discontinued due to concerns around misuse and insufficient regulatory oversight. Unlike its predecessor, the new scheme would likely focus on ensuring that capital is directed towards innovation-led sectors, rather than passive investments such as property, which are expected to be excluded.

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Should the visa be implemented, it would offer a potential route to UK residency for eligible foreign investors who commit significant capital to approved industries. In line with international best practice, the government is expected to introduce strict due diligence and compliance requirements to address risks related to financial crime and maintain the integrity of the system.

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The renewed interest in investment-based migration comes at a time of broader fiscal reform, most notably the government’s decision to abolish the non-domiciled tax regime from April 2025. This change, along with recent increases to payroll taxes, has raised concerns among some existing international residents. As a result, the attractiveness of any new investor route will likely depend on how it balances investment incentives with the UK tax rules.

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For businesses operating in high-growth and strategically important sectors, a revamped investor visa could provide access to new sources of capital and create international partnerships. From a policy perspective, it supports the government’s ambition to position the UK as a global leader in clean tech, artificial intelligence, and scientific innovation.

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If implemented effectively, this scheme could be a valuable tool not only for attracting investment but also for strengthening the UK’s global competitiveness in key sectors. It may also support the wider ecosystem by encouraging further immigration reform, facilitating the entry of both capital and top-tier talent.

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Should you have any queries regarding the above information or if you require assistance with your corporate, employment or immigration matter, please get in touch with a legal professional at Hudson McKenzie via email at londoninfo@hudsonmckenzie.com or by telephone +44(0) 20 3318 5794.

The information provided does not amount to legal advice.

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