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21 November 2025

UK announces Earned Settlement model and opens proposals for public consultation

On 20 November 2025, the UK government announced major proposals to the legal migration system focusing on Settlement (Indefinite Leave to Remain). Building on the May 2025 Immigration White Paper, the new "Earned Settlement" model will require foreign nationals to demonstrate sustained contributions and meet integration and compliance requirements to become eligible for permanent settlement status. This will replace the automatic entitlement system based on applicants' period of stay in the country. British National Overseas (BNO) visa holders with existing Indefinite Leave to Remain (ILR), EU nationals with Brexit rights and foreign nationals with existing settlement status will be exempt.

A Tax Alert prepared by EY's People Advisory Services, and attached below, provides additional details.

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Attachment

Full text of Tax Alert

Document ID: 2025-2347

 
 

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