The UK government’s plan to introduce a new investment visa for wealthy foreign nationals is being criticised as “economically reckless” by one of the world’s leading financial advisers, amid warnings that the policy sends mixed messages to international investors.
Nigel Green, CEO of global advisory firm deVere Group, says the visa proposal — which would offer UK residency in exchange for capital investments in strategic sectors like AI, life sciences, and clean energy — directly contradicts recent tax reforms that threaten to drive wealthy individuals out of the country.
“On the one hand, ministers are asking for billions in backing for AI and clean energy. On the other, they’re pulling the rug from under the very investors who’ve been quietly building Britain’s economy for decades,” said Green. “It’s not just inconsistent — it’s economically reckless.”
The criticism comes just weeks after the government confirmed it would abolish the non-domiciled tax regime from April 2025 — a long-standing incentive that allowed foreign nationals to keep overseas earnings outside the UK tax net. Under the new system, anyone who has lived in the UK for more than four years will be taxed on their worldwide income.
While the Treasury estimates this could raise £2.7 billion per year, critics argue it risks far greater damage in the form of lost investment, jobs, and consumption.
“Britain is throwing out the welcome mat for new capital, while discouraging the people who’ve already made the UK their home,” Green said. “Why would any serious investor commit new money here when the message from the top is: stay too long and we’ll penalise you?”
Green warns that the visa scheme — intended as a successor to the Tier 1 Investor visa, scrapped in 2022 — is too narrowly focused on ‘strategically important sectors’ and ignores the broader context of global investor sentiment.
“The contradiction couldn’t be clearer. The proposed visa targets a small, tightly defined subset of foreign investors, while the tax change risks alienating an entire class of globally mobile wealth-creators already living, spending, and investing in Britain.”
According to Green, most international investors aren’t looking for gimmicks or sector-specific incentives, but rather long-term legal and fiscal stability.
“Capital is fluid. The wealthy have options. They’re looking for countries that reward residency and investment with consistency, not bait-and-switch policies,” he said. “Without a broader policy rethink, the UK’s new visa idea won’t reverse the damage already done.”
The government’s decision to scrap the Tier 1 Investor visa followed concerns over its misuse and security loopholes. However, critics say no credible replacement has been established, and the new proposal lacks the scope and clarity to attract high-value individuals at scale.
Studies have shown that before the tax reforms, non-doms contributed as much as £6 billion in tax annually and were key backers of startups, charities, and the arts. Many are now exploring relocation to jurisdictions such as Switzerland, Italy or the UAE, where tax frameworks are more stable.
While Green acknowledges the UK’s enduring strengths — world-class universities, legal certainty, and a globally respected financial system — he says these are being undermined by short-term political decision-making.
“Global investors don’t want PR gestures,” he said. “They want credible reasons to commit to Britain for the long haul. Right now, that case simply isn’t being made.”
As the government continues its bid to attract foreign investment, pressure is mounting to rethink not only how it welcomes new capital — but how it treats the individuals and families already contributing to Britain’s economy.
