Rishi Sunak, The Chancellor of the Exchequer, delivered the 2020 Budget yesterday, outlining some significant reforms to support public services, businesses and individuals in the UK.
The Budget is a financial statement set by HM Treasury each year outlining the nation’s finances and the Government’s proposed changes to taxation, revenue and expenditure.
This year’s Budget is set against the global outbreak of COVID-19 (Corona Virus) and the UK Government’s pledge to protect health and security despite the increasing economic disruption the virus is causing.
The statement released today confirms an increase in the Immigration Health Surcharge (“IHS”) from the current level of £400 per year to £624 per year. This change will be implemented in October 2020 and will apply to all non-EEA nationals and their relevant family members who make immigration applications to come and live in the UK.
As before, the mandatory IHS fee will only apply to those migrants who will remain in the UK for more than 6 months or to those who are extending their leave.
The changes also include an increase in the normally discounted IHS fee for students and Youth Mobility Scheme migrants from £300 to £470 per year.
Unlike the current scheme, children under the age of 18 will not be required to pay the full IHS fee. The surcharge will be capped at £470 per year for all child migrants in recognition of the financial impact that the fee increase will have on family groups.
From January 2021, the surcharge will also be applicable, under the same conditions, to all EEA migrants arriving in the UK under the proposed new immigration system.
The Office for Budget Responsibility (OBR) forecasts the increase in the IHS surcharge will generate additional revenue of approximately £150 million in the 2020-21 financial year.
The information in this blog is for general information purposes only and does not purport to be comprehensive or to provide legal advice. Whilst every effort is made to ensure the information and law is current as of the date of publication it should be stressed that, due to the passage of time, this does not necessarily reflect the present legal position. Gherson accepts no responsibility for loss which may arise from accessing or reliance on information contained in this blog. For formal advice on the current law please don’t hesitate to contact Gherson. Legal advice is only provided pursuant to a written agreement, identified as such, and signed by the client and by or on behalf of Gherson.
©Gherson 2020
Immigration Consultant and Trainee Solicitor in our Private Client department
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