1 August 2005
Review threat leads Home Office to ease immigration rules for foreign investors
From The Financial Times
Rules restricting the rights of foreign investors to settle in Britain have been eased by the Home Office under threat of a judicial review.
The new rules, governing how long applicants must remain in Britain to qualify for permanent residence, may be extended to professionals working in fields such as banking, medicine and engineering, which are suffering serious skill shortages.
Problems arose after Home Office officials ruled that investors from outside the European Union seeking indefinite leave to remain in the country must have spent no more than six months outside Britain in the previous four years in order to qualify.
The policy threatens to undermine government efforts to attract overseas entrepreneurs and senior professionals who might find it hard to meet the absence rules while still satisfying business and holiday commitments, said Roger Gherson, a leading immigration lawyer.
He had applied for permission for a judicial review of the ruling but, before the application could be heard, the department wrote to Mr Gherson saying that it had changed its mind. Instead of six months, investors will be allowed to spend up to a year out of the country in the four years before they submit their applications for permanent residence, "provided that none of the individual trips is more than three months".
Mr Gherson said it was essential that similar rules applied to other foreign workers who had been in the UK on four-year temporary residence permits but needed to obtain indefinite leave status to meet their professional obligations.
The Home Office accepted that there had been "some confusion" over the requirements. It added: "All categories are being considered as part of the revised guidelines, which will be published as soon as possible."
Mr Gherson's client was originally refused indefinite leave status because he had spent 351 days out of the country in the previous four years.
Officials say this decision has now been reversed following a review. The investor had previously qualified for temporary residence under rules requiring a minimum investment of Pounds 750,000 to be maintained in UK government bonds or in public or private UK companies other than property companies.
Investors can only apply for permanent residence status - one step short of seeking British citizenship - after successfully completing four years on a temporary permit. Mr Gherson said: "The position is just as difficult for, say, the US head of European banking operations based in London who, with trips abroad for work and holidays, could easily exceed the current six-month limit."
Charles Clarke, the home secretary, is currently consulting businesses over the introduction of an Australian-style points system to give priority to skilled immigrants needed to plug large gaps in the British labour market.
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