Innovator Visa Offers an Alternative to the Tier 1 Investor Visa as It Closes in the UK

The Tier 1 Investor Visa was the route offered to individuals with high-net worth who could earn citizenship by investing in the UK economy. The Home Office recently closed this route to new applications. This left applicants without an obvious next step, but for many the Innovator Visa offers an alternative.

The Innovator Visa requires a fraction of the investment cost and, for most prospective applicants, allows him or her to stay permanently, with results in a faster time period.

The main difference between the two is that the Innovator Visa approach requires a more hands-on approach. If you have the will and knowhow to lead a business, and not just provide it funding, then this could be a good alternative for you.

What was the Investor route?

Although not a direct citizenship for money route, the Investor Visa allowed an opportunity to apply for indefinite leave to remain after a number of years defined by the amount you had invested. At minimum it required an investment of £2million in a registered UK business, which would come to term after 5 years, or 2 years if you invested over £10million.

Why it ended.

It was decided that, as it was, the Investor scheme did not do enough to protect against exploitation. It was also believed that the visa had not done enough to create the value to the UK that was intended.

In the wake of these concerns, the Home Office announced that the route would be closed with immediate notice. This was done to prevent a “closing down sale” effect which they feared would be triggered if the standard 21 days notice were provided.

Concerns were raised as part of a review into money laundering into the UK. The review found that the Investor Visa lacked sufficient checks to be secure. It was often unable to tell the difference between honest investors and fraudulent schemes run by the so-called “corrupt elite.”

The visa was meant to create value by bringing funding into UK business, promoting growth and thus creating jobs. However, they believed too much of the incoming money was being lost in the laundering schemes and providing absolutely no benefit to the British populace.

The Home Secretary Priti Patel said there was “zero tolerance for abuse of our immigration system.” Instead of waiting until a replacement was ready, the visa was closed immediately with reforms to come in time.

Where this leaves applicants.

If you had already applied, don’t worry. All applications submitted before the deadline would be processed as if the changes hadn’t happened. Anyone who was unable to submit their application before then will need to wait or seek an alternative.

It was announced as part of the Explanatory Memorandum that investment provisions will eventually become available. This will be worked into changes to the existing Innovator scheme, rather than being a brand new visa. It is expected that these new arrangements will be introduced in the Autumn.

There are significant differences between the Innovator and Investor schemes and, although details are not yet available, they will likely carry over to the investment version of the Innovator Visa. Most importantly, the Innovator route expects a much more active engagement and has more rigorous screening performed by Endorsing Bodies rather than the Home Office.

The Innovator Visa as an alternative.

Although it may not work for everyone, the Innovator Visa is a route that is open to applicants right now, without having to wait. Strictly speaking, this route is for business leaders, so requires being hands-on in the business. It also requires an innovative business that fills a gap in the UK market.

If you have the experience and the ideas, then this route could be a much better opportunity for you. It offers a 3 year right to live in the UK for the holder and their family, with the opportunity to renew or apply for permanent residency at the end. Multiple founders can apply under the same business, so you can work with other business leaders to build the Board of Directors you need to get started.

Each founder needs to meet the conditions separately, and the business has its own requirements to be eligible. More on the details of eligibility can be found here.

Where investment is concerned, they must have secured funding of £50,000 per founder. Even with 2 or 3 other founders alongside you, this is still substantially less than the £5million you would have needed to get a 3 year opportunity with the Investor Visa.

The Innovator visa aims to create jobs in the UK so the business must be viable and scalable, but these are things most investors would look for anyway.

Endorsing Bodies are used by the Innovator scheme to provide the security that was lacked by the Investor Visa. Each of these bodies is a successful UK business that has been licensed by the Home Office as a trusted safeguard. These are the industry experts who will check each application to ensure that the applicant will bring the value that is expected and has the capacity to engage that is required.

Before applying for the visa, you will need to find your own Endorsing Body. At minimum this company will take you through all of the checks required for endorsement and hold continued reviews every 6 months to make sure you’re following the approved plan and growing as expected.

The right choice of Endorsing Body can provide far more than this. Boardroom Advisors’ Part-time Executive Directors are available to support you through your application and beyond. They have all successfully scaled-up companies before and understand UK business. Providing expert guidance drawn from a wealth of experience, there are Advisors to fit your Board whatever your workload, budget and skill needs are.

If you think moving to an Innovator Visa could be right for you, read our process for endorsement for the Innovator Visa Programme and apply today.

John Courtney - Boardroom Advisors

Contact john@boardroomadvisors.co