Faegre Drinker Biddle & Reath LLP, a Delaware limited liability partnership | This website contains attorney advertising.
March 27, 2017

What Are the New Changes to the U.K. Immigration Rules?

The U.K. Government made a Statement of Changes to the Immigration Rules on 16 March 2017 and issued an Explanatory Note shortly afterward. The changes are due to take effect from 6 April 2017 and those applying to Tier 2 of the Points-Based System are summarised below.

Changes to Tier 2 (Intra-Company Transfer/ICT)

  • The Short Term Staff sub-category has been closed.
  • The minimum salary threshold has risen to £41,500 or the appropriate Code of Practice rate, whichever is higher.
  • The salary threshold has been reduced to £120,000 (from £155,300) for senior transferees who wish to extend their total stay in the category to up to nine years.
  • The requirement for transferees paid £73,900 or higher to have at least one year’s experience working for the sponsor’s linked entity overseas has been removed.
  • Changes to the types of allowance allowed to be considered against salary requirements (including that accommodation allowances can form a maximum of 30 percent rather than 40 percent of the total salary package for all ICT workers, except Graduate Trainees).
  • Applicants (including dependents) will now be required to pay the Immigration Health Surcharge of £200 per person per year.

Changes to Tier 2 (General)

  • An increase of the salary threshold for experienced workers to £30,000. For new entrants it will remain at £20,800. Nurses, radiographers, paramedics and secondary school teachers of maths, physics, chemistry, computer science and Mandarin are exempt from this until July 2019.
  • Changes are being made to support posts associated with the relocation of a high-value business to the U.K. or a significant new inward investment project, where the sponsor is a newly-registered (within the last three years) branch or subsidiary of an overseas business and the investment involves new capital expenditure of £27 million or the creation of at least 21 new U.K. jobs. Sponsors in such cases will be exempt from carrying out a Resident Labour Market Test and from the requirement to assign a restricted Certificate of Sponsorship under the Tier 2 (General) limit.
  • The high earner salary threshold has been increased to £159,600 (from £155,300) for those exempted from the Resident Labour Market Test and restricted Certificate of Sponsorship requirements.
  • Minor technical amendments are being made to the Resident Labour Market Test for the permitted websites in milkround recruitment.

Changes to both ICT and General

  • A Certificate of Sponsorship can be considered invalid if any charge applies to it which is not paid in full.
  • An Immigration Skills Charge will be introduced per employee per year of £364 (small/charitable sponsors) or £1,000 (other sponsors).

The material contained in this communication is informational, general in nature and does not constitute legal advice. The material contained in this communication should not be relied upon or used without consulting a lawyer to consider your specific circumstances. This communication was published on the date specified and may not include any changes in the topics, laws, rules or regulations covered. Receipt of this communication does not establish an attorney-client relationship. In some jurisdictions, this communication may be considered attorney advertising.

The Faegre Drinker Biddle & Reath LLP website uses cookies to make your browsing experience as useful as possible. In order to have the full site experience, keep cookies enabled on your web browser. By browsing our site with cookies enabled, you are agreeing to their use. Review Faegre Drinker Biddle & Reath LLP's cookies information for more details.