UK tax incentives attract overseas entrepreneurs, yet immigration policy remains a barrier
Growth in enquiries, led by US nationals
Since the Chancellor’s most recent Budget, requests for UK-relocation advice have risen sharply, most notably from American business owners. The forthcoming Foreign Income and Gains (FIG) regime, which grants four tax-advantaged years to new or returning residents, is a powerful draw when combined with the UK’s political stability, legal certainty, and common language.
The disconnect between tax policy and immigration reality
After the fiscal advantages have been explained, prospective movers must confront the limited immigration routes that permit residence. For high-net-worth founders who have already created significant value, the current menu is narrow and ill-suited; initial enthusiasm often gives way to frustration once the immigration constraints become clear.
Case study: our Cypriot client
One recent engagement involves a Cypriot national who has founded, developed, and currently runs several enterprises, including a substantial technology-services company headquartered in Limassol. Our client’s objective is to relocate to London for three to five years, secure a British education for two school-age children, and is willing to invest a meaningful sum in the UK economy if that will guarantee the right to reside.
Post-Brexit visa landscape
| Route | Core requirements | Suitability for our client |
| Skilled Worker / Senior or Specialist Worker | Sponsorship by a licensed employer, salary thresholds, and Immigration Skills Charge | Not applicable: the client is an owner-investor, not an employee. |
| Innovator Founder | Third-party endorsement; business must be innovative, viable, and scalable; ongoing supervision | Impractical: branching an existing Cypriot firm fails the “innovation” test; the client does not wish to create a nominal start-up purely for immigration purposes. |
| Global Talent | Endorsement in academia, art, or digital technology demonstrating exceptional talent or promise | Inapplicable: the client’s achievements fall outside the prescribed sectors. |
The abolition of the Tier 1 (Investor) visa in February 2022 means there is no route designed for passive or semi-passive investors who are ready to inject substantial funds into the UK economy.
A practicable policy alternative
A calibrated scheme could, for example, require a £2 million commitment, split between UK-listed equities (other than gilts) and a regulated venture capital fund. Such a model would align immigration rules with the Government’s growth-equity agenda and revive the economic benefits once delivered by the Investor visa without resurrecting its more contentious elements.
Conclusion
HM Treasury is prepared to grant generous tax treatment to new arrivals. Yet, the Home Office offers no immigration route that accommodates the very investors the tax policy is designed to attract. Until fiscal and immigration policies are reconciled, the UK risks forfeiting the capital and the human talent its incentives are meant to secure.
