ILR and British Citizenship: The Long Residence Route Explained

For the hundreds of thousands of non-British nationals who live, work, and build families in the United Kingdom, Indefinite Leave to Remain (ILR) is the milestone that converts temporary permission to stay into permanent status. Beyond ILR, British naturalisation — full citizenship — is typically available after one further year. Together, ILR and naturalisation represent the standard formal path to becoming British for immigrants who have genuinely settled here.

This guide covers the main ILR routes, the requirements for naturalisation, the costs involved, and the implications for wealth planning once permanent status is secured.

What ILR Means

Indefinite Leave to Remain — sometimes called "settled status" in the post-Brexit EU context — means that the holder has no time limit on their stay in the UK. They can work, study, and live in the UK without any immigration restriction. They are entitled to access NHS services, can apply for UK bank accounts and mortgages on the same basis as British nationals, and can bring family members to the UK under the family visa route.

ILR is not citizenship. ILR holders cannot vote in UK general elections (though they can vote in local elections), cannot hold a British passport, and remain subject to the immigration rules if their circumstances change significantly. The key vulnerability is the two-year rule: continuous absence from the UK for more than two years causes ILR to lapse automatically, requiring re-application.

British citizenship — naturalisation — resolves all of these issues permanently. A naturalised British citizen has all the rights of a British citizen by birth: the right to vote, to hold a British passport, to live abroad indefinitely without losing their British status, and to pass British citizenship to their children.

The Main ILR Routes

Ten-year long residence. Any non-British national who has spent ten years in the UK with continuous lawful residence — under any immigration category — may apply for ILR on the basis of long residence. The categories that count can be mixed: periods on a student visa, followed by a graduate visa, followed by a skilled worker visa, all count together towards the ten years. The ten years must be continuous and lawful — any gaps (overstaying, periods of unlawful residence) will break the continuity and may reset the clock.

The continuous residence test is not a presence test — you do not need to be in the UK every day for ten years. Standard absences for holidays, work travel, and family visits are allowed. From 11 April 2024 the Home Office replaced the old "540 days total / 184 days single absence" cap with a rolling test: absences must not exceed 180 days in any 12-month period across the qualifying period. (Older absences that occurred before 11 April 2024 are still assessed under the previous 548-day total / 184-day single-absence rules under transitional arrangements.) These thresholds can vary depending on the specific route, so always check the current Appendix Long Residence guidance.

Skilled Worker (and predecessor Tier 2) — five years. A skilled worker (previously Tier 2 General) migrant who has spent five years on that visa can apply for ILR after five years. This is the main employment route to ILR and is used by many professionals, executives, and specialists who came to the UK on work visas.

Spouse or civil partner of a British national — five years. A non-British national who is married to or in a civil partnership with a British citizen can apply for ILR after five years of lawful residence as a spouse (typically 2.5 years on initial leave, then 2.5 years' further leave). The relationship must be genuine and subsisting throughout.

EU Settled Status — pre-Brexit. EU, EEA, and Swiss nationals who were resident in the UK before 31 December 2020 and applied under the EU Settlement Scheme received either settled status (equivalent to ILR, for those with five or more years of residence by the deadline) or pre-settled status (temporary, leading to settled status after five years). Settled status holders can apply for naturalisation in the normal way.

Investor route (Tier 1 Investor) — closed February 2022. The Tier 1 Investor route — which required investment of £2,000,000 in UK government bonds or share capital — was closed to new applicants in February 2022 following concerns about money laundering and inadequate due diligence. Those who already held Tier 1 Investor status can continue on existing permissions, but no new Tier 1 Investor applications are being accepted. The UK currently has no equivalent investment migration route to ILR.

The ILR Application

The ILR application is made online, supported by an appointment at a UK Visas and Immigration service centre for biometric enrolment and document verification. Required documentation typically includes:

• Passports (current and all passports held during the qualifying period)
• Evidence of continuous lawful residence (visa endorsements, travel history)
• Evidence of English language proficiency (degree taught in English, or approved test)
• Life in the UK Test pass certificate
• Bank statements and employment records
• For long residence route: a detailed travel history for the entire ten-year period
• Two passport-sized photographs

Processing times for ILR applications vary from weeks to several months depending on the route and the volume of applications at the relevant service centre. Some applications are prioritised for a fee.

The fees. ILR costs £3,226 per person from 8 April 2026. For families applying together — a parent and three children — the total ILR application fees before legal costs reach approximately £12,904. If an immigration solicitor is instructed (strongly recommended for complex applications), professional fees add further cost. These are among the highest immigration fees anywhere in the world: the Home Office immigration fee income is a significant revenue line for the UK government.

From ILR to British Citizenship

After receiving ILR, a person typically must wait one further year as an ILR holder before becoming eligible to apply for naturalisation as a British citizen. During that year, they must not spend more than 90 days outside the UK (a stricter presence requirement than applies to ILR qualification).

Naturalisation requires:

The residence requirement. The applicant must have been in the UK for the five years preceding the application (or three years if married to a British national), and must not have spent more than 450 days outside the UK in those five years (or 270 days in the three-year spouse route). In the twelve months before the application, absence must not exceed 90 days.

Language. The applicant must demonstrate sufficient knowledge of English (or Welsh or Scottish Gaelic). This is typically satisfied by holding a degree taught in English, or passing an approved English language test.

Life in the UK Test. Must be passed, as described above.

Good character. The Home Office assesses "good character" — a broad test covering criminal record (criminal convictions can disqualify or delay applications), financial conduct (significant tax debts or undischarged bankruptcy are problematic), and general civic behaviour. Applications from individuals with complex financial histories, regulatory issues, or significant adverse media should be prepared carefully with specialist immigration legal advice.

Naturalisation fee. £1,709 per adult applicant (from 8 April 2026), plus additional fees for children, ceremony costs, and legal fees.

After approval, applicants attend a citizenship ceremony, take an oath of allegiance to the Crown, and receive a certificate of naturalisation. A UK passport application can then be made — the British passport is one of the world's most powerful travel documents (186+ countries visa-free).

Wealth Planning Implications of ILR and Naturalisation

Obtaining ILR — and certainly naturalisation — has material implications for UK wealth planning that should be considered in advance:

Income tax. The remittance basis and the non-dom regime were abolished on 6 April 2025. There is no longer any remittance-basis option for new or long-term UK residents. Under the post-April 2025 reforms, all UK residents pay UK income tax on the arising basis — worldwide income taxable as it arises, not as it is remitted — although a new 4-year Foreign Income and Gains (FIG) regime gives qualifying recent arrivers (those non-UK resident for the prior 10 tax years) relief on foreign income and gains for their first four years. By the time most individuals reach ILR they will have been UK resident well beyond four years and so taxed on the arising basis. Clients who previously used the non-dom remittance basis should review their position with a UK tax adviser.

Inheritance tax. From 6 April 2025, IHT exposure is determined by long-term UK residence rather than by domicile, citizenship, or immigration status. Broadly, an individual who has been UK resident for at least 10 of the last 20 tax years is a "long-term resident" within the scope of UK IHT on their worldwide estate. Most people will have crossed that threshold well before, or around the time, they reach ILR. Obtaining British citizenship does not itself change the IHT analysis. The interaction of the long-term residence test with existing trusts and overseas assets is complex and requires specialist advice.

Pensions. As a UK resident with ILR, an individual can make pension contributions to UK registered pension schemes and benefit from UK tax relief. The annual allowance (£60,000 for 2026/27, subject to tapering for high earners) applies in the normal way. The lifetime allowance was abolished on 6 April 2024 and replaced by the Lump Sum Allowance (£268,275) and the Lump Sum and Death Benefit Allowance (£1,073,100), which cap tax-free lump sums rather than total pension value. Pension planning should be reviewed as ILR is obtained to maximise the available reliefs.

Compliance Caveats

UK immigration law is complex, changes frequently, and is subject to political change. Fees, qualifying periods, and requirements described here reflect the position as of 2026 but may have changed. This guide does not constitute legal advice. Individuals pursuing ILR or naturalisation should instruct a qualified UK immigration solicitor. Wealth planning implications should be addressed with qualified UK tax advisers.

How Global Investments can help

Global Investments works with internationally mobile individuals and families who have built significant wealth across multiple jurisdictions. As clients approach ILR and naturalisation, we help them think through the wealth planning implications — pension structuring, international property holdings, trust planning, and tax residency considerations — and connect them with specialist UK legal and tax advisers. Contact us for a confidential discussion.