The UK drops a GBP 5 million investor visa: what remains for wealthy families

In brief

• On 22 October 2026 the business press reported that a new investor visa will not be part of the UK Budget on 28 October.
• The plan involved investing at least GBP 5 million in British Business Bank funds, with a path to settlement once the full amount was paid in over 5 years.
• At a closed-door discussion in June the Treasury doubted the growth benefits, and the Home Office was not convinced either.
• The investor visa has been closed to new applicants since February 2022. Those who obtained it earlier can apply for settlement until February 2028.
• The government has not published any official decision on the visa: everything known about the plan comes from the press.

What is known about the GBP 5 million visa

The plan was drawn up under former Prime Minister Keir Starmer. It was worked on by then Business Secretary Peter Kyle and Varun Chandra, the Prime Minister's adviser on business and investment. The logic was to replace the old investor visa, closed over money-laundering risks, with a narrow route for active investors in technology.

An investor would have committed at least GBP 5 million to funds run by the British Business Bank. The right to settle would come once the full amount was paid in, and it could be paid in over five years. Advisers targeted investors in artificial intelligence and life sciences. In early drafts property did not count, and applications were by invitation only.

In May the plan was shown to private wealth advisers, and in June it was discussed at a closed meeting in the Cabinet Office. There, according to the press, Treasury officials doubted that such a visa would speed up growth, and the Home Office was not convinced of its benefits. After the change of Prime Minister in July the plan lost its authors: Peter Kyle is no longer Business Secretary, and John Healey became Chancellor.

Signals were mixed until the end. Five days before the report that the plan had been dropped, another business outlet wrote that the Chancellor was considering a residence route for wealthy foreigners. The change of government in the summer also played a role: on 20 July 2026 Andy Burnham became Prime Minister, John Healey became Chancellor, and Jonathan Reynolds took over as Business Secretary.

What this means for you. If you were waiting for a British investor visa to move your family and capital, you cannot plan on it in 2026-2027. Even if the issue returns, it will need legislation, rules and a launch, which takes at least a year.

Why did London drop a visa for the wealthy?

The main argument against, as reported by the press, is the Treasury's doubt about the economic effect. Over its years of operation the old investor visa brought in a lot of money, but critics pointed out that much of it went into passive assets rather than growing companies. The government closed it in February 2022, citing security risks and money laundering.

The new plan tried to fix this: money would go into funds that finance British business, not into bonds or housing. But the Treasury still had questions: how many people would actually come, how much money they would bring beyond what would have come anyway, and whether the route would invite political criticism. For a government promising tighter control of migration, a visa for the wealthy is an awkward subject.

Yet the debate is not over. Investment migration advisers say frequent changes of direction send investors the wrong signal and do not rule out the issue returning. Industry groups propose their own models. One is a global investor visa: GBP 2.5 million in UK assets within three months and a flat payment of GBP 200,000 a year for up to 15 years instead of tax on foreign income. The opposition party Reform UK floated its own card for GBP 250,000. None of these proposals has been adopted.

What this means for you. Britain has chosen tax incentives for new residents over a visa for money. For an investor this means a move to London is decided through business, work or talent, not through the size of an investment.

How the old investor visa worked

To see why the issue keeps returning, it helps to recall how the old visa worked. It was introduced in 2008 as part of the points-based system. From November 2014 the minimum investment was GBP 2 million, and the more an investor put in, the sooner they could apply for settlement.

1. GBP 2 million: settlement after 5 years.
2. GBP 5 million: after 3 years.
3. GBP 10 million: after 2 years.

The money could be invested in shares and bonds of UK companies. Owning a home in London was not required, and the presence requirement was mild. That is what made the visa popular with wealthy families worldwide and at the same time open to criticism: checks on the source of funds were weak in the early years.

On 17 February 2022 the government closed the visa to new applicants, citing security and money-laundering risks. The 2026 plan differed from it in almost every way: a higher amount, money going into funds managed by a state development bank, no property, and applications by invitation only. But even such a narrow version did not go through.

What this means for you. If you remember the British investor visa as a simple GBP 2 million route, that route is gone and, judging by the 2026 plan, will not return in its old form. Any new version will be more expensive and stricter.

The tax regime for new residents: who benefits

On 6 April 2025 the United Kingdom abolished the former non-dom status and introduced a regime for foreign income and gains. It is available to those who become UK tax resident after at least 10 consecutive years without UK residence. For the first four years such residents pay no UK tax on foreign income and gains if they claim it in their tax return.

At the same time inheritance tax changed: it now depends on how many years a person has been resident rather than on domicile. A long-term resident is someone who has lived in Britain for at least 10 of the previous 20 years. For families with capital abroad this matters: the four relief years pass quickly, and inheritance tax reaches foreign assets later, but inevitably.

The industry proposal for a global investor visa tries to combine the two topics: investment in UK assets and a flat payment instead of tax on foreign income over a long period. For now it is only a proposal, but it shows the direction the debate may take.

What this means for you. The tax regime does not replace a visa. It is useful if you already have a basis to live in Britain, and it should be weighed together with inheritance tax over a 10-year horizon.

4 routes to the UK that remain

Without an investor visa, a wealthy family is left with routes where activity matters, not money. None of them gives a right to live in the country for an investment of capital alone.

What to watch on 28 October. The Chancellor has promised a Budget for entrepreneurs, so changes may concern not an investor visa but conditions for company founders and business taxes. If the Budget brings measures for entrepreneur visas or for attracting capital through funds, we will cover them in a separate news item. The absence of an investor visa from the Budget does not stop the government returning to the issue later, but that would require new rules and a public announcement.

Families are a separate question. Business and employment routes allow a spouse and children to come too, but the main applicant must meet the conditions of their visa throughout. That is a different logic from the investor visa, where the main condition was keeping the investment. For a family where nobody plans to work or run a business in Britain, there are practically no British options today.

Holders of the old investor visa have nothing to fear: the changes do not affect them, and they can apply for settlement until February 2028. If you are one of them, keep the deadlines under control: after that date the route is closed.

What this means for you. If your goal is to live in London, start with what you will do there. A business basis, employment or recognised achievement is more realistic today than waiting for a new investor visa.

Where an investor can get residence for an investment in 2026

Britain's decision does not mean Europe has no residence by investment. It means investment programmes run in other countries and on other terms. Each is designed differently, and the choice depends not only on the amount but on whether you need to live in the country, whether you need a path to citizenship and how you view taxes.

Greece keeps residence for a property purchase, but after higher thresholds and stricter rules demand has shifted, as we covered in the article on Greek golden visa applications. In Portugal the golden visa works through funds and other investments rather than housing and faces long queues; more in the review on golden visa queues. Andorra offers passive residence with a large investment; the terms are on the page on Andorra residence. The United States is a separate story: the EB-5 route depends on the visa queue, covered in the article on the EB-5 visa bulletin.

If the tax regime matters more to you than the permit itself, compare countries by tax on foreign income. The Netherlands, for example, is changing its regime for specialists, as covered in the article on the 30% ruling. The programme catalogue is in the residence section, and citizenship programmes in the citizenship section.

What this means for you. Decide on the goal first, then the country. Different programmes suit living in Europe, a backup status and tax, and the British option is currently missing from the list.

Checking your plan: 4 steps

How this article was prepared

The article is based on business press reports of 22 October 2026 that a new investor visa will not be included in the UK Budget on 28 October, and on an earlier report that the Chancellor had been considering a route for wealthy foreigners. The UK government has published no official document on the visa, so the details of the plan are given as reported by the press. Information on the closure of the investor visa in February 2022 and on the tax regime for new residents from April 2025 follows UK government decisions. Proposals by industry groups and the opposition are presented as proposals, not rules. This article does not replace advice on your own situation.