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Envestors, a Home Office-approved endorsing body, formally proposed a new “innovator business angel visa” designed to replace the old Tier 1 Investor route that was scrapped in 2022. The proposal doesn’t intend to relaunch the old visa but to directly address its failures.
It aims to attract wealthy investors, or “business angels,” who can actively grow the UK economy and not just park their money in the country. The minimum £2 million investment requirement remains, but will now focus more on active engagement in the business than passive wealth.
The contractor’s plan suggests a fast-tracked path to Indefinite Leave to Remain (ILR), or settlement, in just three years. This would be a compelling offer for global entrepreneurs and investors concerned by recent changes that have tightened visa rules and lengthened the path to ILR.
Original Tier 1 vs the Proposed Business Angel Investor Visa
The original Tier 1 Investor visa’s major requirement was the minimum £2 million investment. It was closed in 2022, as it was widely critisised for attracting passive, “low-quality” investments, or being used as an avenue for ill-gotten gains.
The new “business angel” visa would target individuals who act as mentors and partners, not just financiers. Applicants would need to have corporate and business experience and pass rigorous anti-money laundering and due diligence checks.
What Is in Envestors’ Proposal?
Key features of the plan include:
- Investment Threshold. The same minimum £2 million investment requirement applies. This money must be deployed into a minimum of three UK companies to ensure a diversified and impactful investment.
- Fast-Track to Settlement. A three-year path to Indefinite Leave to Remain is on the table under these conditions: the companies receiving the investment must create at least 15 full-time jobs and generate £1 million in annual revenue.
- Focus on Strategic Sectors. These “strategic sectors” include artificial intelligence (AI), clean energy, life sciences, and advanced manufacturing.
This kind of targeted investment could greatly accelerate the growth of the UK’s most promising startups and scale-ups, as they not only get the necessary funding but also expert mentorship to succeed.
A Direct Solution to Current Economic Challenges
The proposal could not be timelier, as the government faces pressure from business leaders over recent policy changes. This includes the end of the non-dom tax scheme and increased National Insurance contributions, which may have made the UK a less attractive destination for some high-net-worth individuals.
Economists and city leaders have already raised alarms about the potential for a “brain drain” of wealthy investors leaving the country.
This new “business angel” visa offers a proactive solution to these concerns, sending a strong message that the UK remains open for business and is determined to attract the best global talent and capital.
What Happens Next?
Take note that it is still a proposal, not a policy. The government is currently considering its options and is expected to conduct interdepartmental consultations on the plan.
Whilst the details of the visa are not yet final, the directions are clear. The government is committed to creating a pathway for productive capital that supports national growth objectives without compromising oversight.
Are You Ready to Be a 'Business Angel' in the UK?
The potential return of a UK investor visa marks a significant opportunity for global entrepreneurs and high-net-worth individuals. At Legend Consults, we are closely monitoring every development of this new visa proposal.
You need an advisor who understands not just the rules, but the strategic intent behind them. Currently, we can help you assess your potential pathway and ensure you are ready to act the moment a new visa route becomes available.
📞 Contact us today for a personalised consultation and let us help you plan your next move.
