When the UK decided to depart the European Union following a referendum on 23 June 2016, measures had to be taken to guarantee the rights of EU nationals living in the country.
As a result, the EU Settlement Scheme (EUSS) was introduced, which gives EU citizens the legal right to live and work in the UK, similar to ‘indefinite leave to remain’.
The final deadline for EUSS applications is 30 June 2021, but law firm Russell Speechlys is urging European high net worths (HNWs) who plan to stay and live in the UK to send off their applications before the end of the Brexit transition period on 31 December 2020.
Kelvin Tanner, partner at Charles Russell Speechlys, told International Adviser: “We have seen a steep increase in the number of EU passport holders moving to the UK, to safeguard their right of residence by applying to the EUSS.
“Those who enter the UK prior to the 31 December deadline, will then have until the 30 June 2021 to apply.”
‘Grace period’
But Tanner warned that there is a catch.
The legislation that is supposed to come into force from 1 January 2021 is still in a draft form, meaning that changes could still be made.
Additionally, the six months between 1 January and 30 June 2020 are viewed as a “grace period”.
Tanner explained this means that people who apply for the EUSS after 31 December “must ensure their residence is in accordance with the EEA Regulations 2016, before the end of the transition period”.
That piece of legislation covers all criteria required for EEA nationals that wish to move and remain in the UK must meet.
For instance; continuity of residence, which requires people to not have spent more than six months outside of the UK within a 12-month period.
No time to wait
But the biggest problem for HNWs applying between 1 January and 30 June 2021 could be the requirement to hold comprehensive sickness insurance, both for those who are in the UK in a self-sufficient capacity or as students.
Tanner added: “If not, their rights may not be fully protected for the period from 1 January until they receive pre-settled or settled status under the scheme.”
Pre-settled status is a temporary leave which allows an EU national to stay in the UK for five years.
Settled status is permanent.
He continued: “Personally, I would encourage clients not to wait and to apply to the EUSS as soon as possible, ideally before the 31 December.
“If this isn’t a realistic option, then individuals should at least consider the precautionary measure of ensuring they hold valid comprehensive sickness insurance by 31 December, to help avoid potential difficulties later down the line.”
