For me, the key similarity between the Spring Budget delivered by Jeremy Hunt (see my previous post) and the Autumn Budget announced by Rachel Reeves on 30 October 2024 (see link) is that neither of them mentioned “visa”. 

With a Budget that includes 472 appearances of “invest”, it is disappointing that the Labour government have not shed light on how they are going to attract foreign investment or how they can implement a “new internationally competitive residence-based regime” for the UK tax system if there is currently no obvious immigration route for these big plans.  Whilst there were flaws with the previous Tier 1(Investor) visa route, not having an investment-based visa at all is unlikely to make the UK competitive at an international level.  

“Residence-based”?

The residence tests for the different routes to Indefinite Leave to Remain (i.e. permanent residence) have changed a few times in recent years, and these are not the same as the residence thresholds for British citizenship by naturalisation.  Furthermore, residence for UK immigration and tax purposes are not the same. 

With the proposed residence-based four-year Foreign Income and Gains regime and Inheritance Tax system in mind, it is therefore crucial to ensure that an individual understands how the UK tax and immigration systems interact and seeks advice at the earliest opportunity.  

Our articles and Passle posts explain the concepts of domicile and residence, and also the differences between UK immigration and tax residence (e.g. see this post).

How can we help?

Burges Salmon's specialists have substantial experience in immigration, tax, trusts, and estate planning for international clients.  If you wish to discuss any of the matters raised in this article, please do get in touch with Suzanna Harvey, Myra Leung or your usual contact within the team.