New UK Immigration Rules: 3-Year Settlement for High Taxpayers

📝 New UK Immigration Rules: 3-Year Settlement for High Taxpayers

A New “Earned Settlement” System Based on Contribution

In November 2025, the UK government introduced a major proposal that could significantly change the current settlement (ILR) routes. The new model, described as “earned settlement”, links the settlement timeline to a person’s income level, tax payments, English skills, benefit usage, and immigration compliance.

Under this proposal, the standard settlement route would move from 5 years to 10 years. However, individuals with higher income and higher tax contributions may qualify much sooner.

⭐ 3-Year Settlement Route for Additional-Rate Taxpayers (45%)

Individuals whose income falls into the 45% additional-rate income tax band may become eligible for ILR after only 3 years of lawful residence in the UK.

This fast-track route mirrors the current 3-year pathways available to Global Talent and Innovator Founder visa holders. 💼💷

⭐ 5-Year Settlement Route for Higher-Rate Taxpayers (40%)

People in the 40% higher-rate tax band could qualify for settlement after 5 years, significantly shorter than the proposed 10-year standard route. ⚡

⏳ Standard Route for Everyone Else: 10 Years or More

Those who fall within lower tax bands (basic rate or no tax) will generally follow the 10-year route.
In some cases—such as lower earnings, benefit usage, or certain immigration breaches—the route may extend to 15 or even 20 years. 🕒⚠️

💷 Income Levels Required for Higher Tax Bands

For the 2025–26 tax year:

• Up to £12,570 → 0%

• Up to £50,270 → 20%

• £50,271 to £125,140 → 40% tax

• Above £125,140 → 45% tax

Therefore:

🔹 Income above £125,140 → 3-year settlement
🔹 Income above £50,271 → 5-year settlement

📌 Mandatory Requirements for All Settlement Routes

1. 🔒 Character & Suitability

• No serious criminal record

• No debt to the government (tax, NHS charges, etc.)

• No significant immigration breaches

2. 🗣️ Integration

• English level B2

• Passing the Life in the UK Test

3. 💼 Financial Contribution

• Evidence of real tax payments over several years

• Higher income = shorter settlement path

4. 📍 Continuous & Lawful Residence

• Legal stay throughout the qualifying period

• Limited or no use of public benefits

🎯 Example of Someone Who Qualifies in 3 Years

A person who:

• Earns £130,000+ per year

• Pays income tax at the 45% rate

• Has English level B2

• Passes the Life in the UK Test

• Has no debts or criminal issues

May apply for ILR after only 3 years of living in the UK. ⭐🇬🇧

⚠️ Important: These Rules Are Not Final Yet

The proposal is still under consultation and may change slightly before becoming law.
However, it is considered highly likely that a version of this system will be implemented.

Those who will soon reach 5 years under current rules may benefit from applying as soon as they are eligible. ⏳

📍 Summary

• Settlement will depend on tax contributions and income level.

• Additional-rate taxpayers (45%) → 3 years

• Higher-rate taxpayers (40%) → 5 years

• Others → 10 to 20 years

• English level, Life in the UK Test, compliance and taxes all play key roles.