Govt urged to introduce investor visa to retain HNWIs

The government should introduce an investor visa to stem the flow of high net worth individuals (HNWI) leaving the UK and improve international competitiveness, according to Utmost Wealth Solutions.

Utmost Wealth Solutions global wealth specialist, Marc Acheson, argued that the visa would need to deliver immediate economic benefit and be paired with a tax system that incentivises HNWIs to stay for the long term for it to be effective.

In the Autumn Budget 2024, the government removed the concept of domicile status from the tax system and replaced it with the Foreign Income and Gains (FIG) regime.

It recently announced technical amendments to the new residence-based tax regime, which included minor corrections to existing legislation and will be published in the legislation and explanatory notes as part of the Finance Bill 2025/26.

The measure will affect around 17,000 individuals who will be eligible for the four-year FIG regime and Overseas Workday Relief, and at least 23,000 remittance basis users who may be eligible for the Temporary Repatriation Facility, the government estimated.

The government said the minor changes aimed to ensure the new residence-based regime operated as intended, and was both fair and internationally competitive.

Commenting in response to the publication, Acheson called for a new investor visa and a more competitive tax regime.

“The UK is suffering from a sustained flight of wealth following the abolition of the non-dom regime at the Autumn Budget 2024, alongside the removal of the inheritance tax (IHT) protections on foreign assets, extension of periodic and exit charges to excluded property trusts, increases to capital gains tax (CGT) and application of IHT to both business and agricultural property,” he stated.

“The non-dom regime – while not perfect – was effective in attracting wealthy individuals to the UK on a long-term basis who contributed significantly to overall tax revenue.

“To stem the wealth exodus and improve the international competitiveness of the UK, the government needs to introduce an investor visa that delivers immediate economic benefit and for it to be effective it must be paired with a tax system that incentivises people to stay for the long term.”

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