Yahoo Finance UK to scrap golden visas for foreign investors
The government is expected to scrap so-called “golden visas” for wealthy foreign investors amid concerns over links between Russia and the UK.
Those eligible for the tier one investor visa, launched in 2008, must have at least £2m in investment funds and have a UK bank account.
It has been under review due to repeated concerns that the system could be exploited because not enough background checks are made on applicants.
The rules to qualify for investor visas were tightened up in 2015 and checks on how applicants obtained their money were introduced. Since 2019, applicants must also have proof of a UK bank account.
The BBC now reports an unnamed government source has confirmed the scheme will be abandoned in an announcement to be made next week.
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Home secretary Priti Patel has decided to close the route because of “long-standing concerns” over abuse of the scheme by criminal groups and the super-rich from several countries, including Russia, China and Kazakhstan.
The government issued 798 investor visas in the 12 months to September 2021, of which 82 were given to Russians and 210 to Chinese nationals.
The decision comes amid concerns about Moscow’s influence in the UK as tensions continue about a potential Russian invasion of Ukraine.
Russia has amassed more than 100,000 troops along Ukraine’s border – but denies it is planning an invasion.
The visas were introduced by Labour in 2008 in response to the financial crisis, granting British residency in exchange for seven-figure investments. The initiative fuelled a property boom for wealthy Russians in Britain.
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The tier one visa offers residency to those investing £2m or more in the UK, and allows their families to join them.
These visa holders can then apply for permanent residency in the UK, at a speed depending on on the size of their investment.
A £2m investment allows an application within five years, shortened to three years with £5m or two years if £10m is invested.
The investment can be made in gilts, or government bonds, or in British businesses.
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