Anyone wishing to obtain a Tier 1 Visa for the UK (the so-called “Investor Visa”) may have to act swiftly as such visas may soon not be available. The recent report of the Migration Advisory Committee (MAC), under the chairmanship of Professor Sir David Metcalf, raised questions as to whether the current system for issuing Tier 1 Visas was bringing maximum benefit to the UK.
Basically, an investment of £1m can see the applicant receive such a visa, which often leads to the granting of a British passport. But this investment is simply into gilts which after five years can be sold on, thus leaving no lasting gain for the UK economy. The MAC recommended that only a certain number of Investor Visas would be available in any one year, and that these would be obtained through an auction, with a minimum bid required of at least £2.5m.
But now the Home Affairs Select Committee of the House of Commons has stepped into the fray. This Committee has expressed concerns about the way a number of European countries are issuing visas and citizenship to individuals whose only qualification is that they have sufficient wealth to buy them. (See The EU Visa Market Place in this column, 17 March 2014.)
In the light of these fears, the Select Committee has recommended the complete suspension of the Tier 1 Visa scheme, while the government, “considers the options for a system more beneficial to the UK”. Even though this is just a recommendation from a committee which reports to the House of Commons and not to the government, any would-be applicant for a Tier 1 Visa would do well to take heed of the recommendation and act sooner rather than later.
The Select Committee’s terms of reference are to examine the expenditure, administration and policy of the Home Office. As such, it is an important body and needs to be taken seriously. Furthermore, although the government is not obliged to reply to the Committee within any time-frame, convention – which is highly significant in British politics, where there is no written constitution – suggests that this is usually done within two months.
If the government decides to take the Select Committee’s advice and suspend the Tier 1 “Investor” Visa, it is likely that such a measure would come into force immediately. Not only would this prevent any new applications being made, it may even halt those already in progress. Such a suspension may be only temporary, but it could prove disruptive to those wishing to go down this visa route.
