What Happens if ILR is Refused?

A refused ILR application can be devastating, particularly after the cost, time and effort of compiling the application and supporting documents.

According to Home Office statistics, approximately 5% of ILR applications are refused, with common reasons including gaps in residency, tax issues, salary shortfalls, or concerns about character and compliance with immigration rules.

You will need to understand the grounds for refusal when considering your options and next steps. Importantly, you will need to take action to avoid overstaying and protect your legal status in the UK. You may have options to challenge the decision, reapply or switch to another visa category. If no alternative route is available, you would need to leave the UK before your current permission expires to prevent legal consequences, such as a re-entry ban or future visa complications.

In this guide we set out the implications of a refused ILR application and the options that may be open to you. For advice on your individual circumstances, contact our UK immigration specialists.

 

What happens if ILR is refused?

 

If an application for Indefinite Leave to Remain (ILR) is refused, the applicant will receive a refusal letter from the Home Office explaining the reasons for the decision. The letter may outline whether there is a right to an administrative review, appeal or whether the only option is to submit a new application.

A rejected ILR application does not automatically mean removal from the UK, but it can impact legal status. If the applicant’s current visa has expired, they may need to leave the UK unless an alternative immigration route is available. Overstaying can lead to a re-entry ban and affect future applications.

If an administrative review is available, the applicant can request the Home Office to reconsider the decision if they believe an error was made. Where human rights grounds are involved, an appeal to the First-Tier Tribunal may be possible. If neither option applies, judicial review may be considered as a last resort.

Reapplying is an option if the reason for refusal can be addressed. Seeking professional legal advice is strongly recommended to assess the best course of action and ensure a stronger application if resubmitting. Understanding the options early can help prevent further complications.

 

Will I get a refund if my ILR application is refused?

 

The Home Office will provide a refund of the application fee if your ILR application is refused. The fee covers the processing of the application, regardless of the outcome. Refunds are only issued in very limited circumstances, such as if the application was withdrawn before processing began.

 

ILR refused – what are your options?

 

The place to start is the refusal letter from the Home Office. Consider the grounds that have been given for the decision, as this will help determine your next steps.

Taking legal advice can help you understand why your application was refused and what you can do next in your circumstances. Generally, the options if your ILR application has been refused are to either:

 

• Appeal the decision
• Apply for an Administrative Review of the decision
• Apply for Judicial Review of the decision
• Submit a new ILR application

 

You will need to act quickly, however, as some courses of action are subject to time limits.

 

Appealing the decision to refuse your ILR application

 

The right to appeal only applies in limited circumstances, where you can show your human rights would be infringed by refusing your application. The Home Office decision letter would need to state that an appeal is open to you.

Strict timeframes also apply; for applicants already in the UK, you must submit your appeal within 14 calendar days of the decision notice. If you are outside the UK, you have 28 days from the decision date.

 

Applying for an Administrative Review

 

If your refusal looks to be on the basis of a mistake or error in the Home Office’s decision-making, it may be possible to apply for your application form and supporting documents to be reviewed again. This process is called Administrative Review.

It is advisable to seek professional guidance when making an Administrative Review application to ensure you are fully explaining and evidencing the error or mistake that resulted in the refusal.

For Administrative Review to be available, you will need to be applying for ILR on the basis of a points-based visa. Your refusal letter will advise if this option is available to you and the time limits you will need to meet. In most cases, you have to make the application for Adminstrative Review within 28 days of the decision letter. It costs £80 to file the application.

If the Administrative Review finds in your favour, the original decision will be overturned. Administrative Review processing can, however, take around six months.

 

Judicial Review

 

Judicial review offers a last resort option and is only available where the court permits it. It is a complex process which assesses the legal basis of the Home Office’s decision to refuse your application.

Judicial reviews are lengthy and complex. Specialist legal advice will be critical if you are considering this course of action, to weigh up the merits of your case and the prospects of successfully overturning the refusal, and to build a compelling case to support the legal grounds of your challenge.

 

Submit a new ILR application

 

In most cases, ILR applicants will simply need to make a new ILR application, addressing the grounds for refusal stated on the refusal letter.

If the reason for the refusal is something that could be fairly easily rectified, such as a typo, or an error on the application form, or a missing document, you could make a new application, providing the correct information and documents, and reapply straight away.

 

Commons grounds for refused ILR applications

 

As an ILR applicant, it is helpful to understand and avoid common grounds for ILR refusal:

 

Excessive absences

 

To be eligible for ILR, you cannot have been absent from the UK for more than 180 days in any given 12 month period within your overall qualifying period. This rule now also applies to PBS dependants.

Gaps in your UK residency in excess of the threshold will require you to ‘reset the clock’, starting your qualifying period from the end of your last ‘excessive’ absence.

Some absences will not be counted as breaking your continuity and therefore will not need to be included. In addition, partial days are not included, only full 24 hour absences count. The period between the issue of your entry clearance and entering the UK is also not included.

It is highly recommended to seek legal advice regarding your absences as the requirements are very stringent, complex and subject to change.

 

ILR refused due to tax issues

 

ILR can be refused due to tax issues, often because of discrepancies between declared income in visa applications and HMRC records, late tax filings or unpaid liabilities. The Home Office may view inconsistencies as dishonesty, affecting the good character requirement. To avoid refusal due to tax issues, check your tax records are accurate and up to date before applying.

 

Issues with your ILR application form

 

If your application form hasn’t been correctly completed, or there are issues with your supporting documentation, the Home Office may refuse your application. Before you submit the form, ensure all of the information is complete and correct and that you are submitting all the necessary documents.

 

Failure to disclose or manage debt

 

Having debt is not in itself a ground for refusal. However, if you have a CCJ which is still on the register, you must declare this within your application. The Home Office will investigate the status of your repayments and look for evidence that you have kept up agreed payment plans and there are no concerns about growing debt or failure to pay, as this would likely constitute conduct and character grounds for refusal.

 

Immigration breaches

 

If your records show past UK immigration issues which you fail to mention on your ILR application form, such as deportation or a period with unlawful immigration status, your application is highly likely to be refused. However minor you believe them to have been, or however long ago they took place, you are required to give full disclosure of immigration breaches in your application.

 

Criminal convictions

 

All criminal convictions, including cautions and previous arrests, must be declared on your ILR application. This is regardless of where and when the offence took place. Again, failure to disclose results in refusal.

It is best to seek legal advice if you have anything to disclose that would suggest ‘adverse character’, to understand if and how this will impact your application. You need to demonstrate that you are of ‘good character’, as such, any cautions or arrests may require subsequent character references to support your application.

Paragraph 322 of the ‘General Grounds for refusal’ state that if an applicant has been convicted of an offence for which they have been imprisoned for 4 years or more, their application will be denied.

Likewise, should an applicant have been convicted of an offence for which they have received a custodial sentence for at least 12 months but less than 4 years, they will also be denied ILR unless a period of 15 years has passed since the end of the sentence.

If you have been convicted of an offence and sentenced for less than 12 months, a period of 7 years since your sentence finished must have passed prior to you being eligible to apply for ILR.

Any offence which you have been convicted for or admitted to which is added to your criminal record within 24 months prior to the date of application for ILR, will lead to a refusal, even if a non-custodial sentence has been issued.

 

Driving offences

 

While a fine for a minor driving offence is unlikely to be detrimental to your ILR application, more serious offences such as drink driving are likely to impact your eligibility under the good character requirement.

 

Failure to meet language and Life in the UK requirements

 

Most applicants will be required to take the Life in the UK test before applying for settlement.

There are limited exemptions, such as applicants under the age of 18, those over the age of 65, those who have previously taken and passed the test or those with a long-term physical or mental condition.

All applicants aged between 16 and 65 from non-English speaking countries must also provide evidence of English Language ability, unless they have a physical or mental condition that prevents them from doing so.

Acceptable evidence will be a document or academic qualification that was with taught or research in English and is recognised by UK NARIC as equivalent to a UK bachelor’s degree or higher, or taking an approved English language test and passing with at least a CEFR level B1 in speaking and listening.

 

Adverse behaviour

 

Any examples of using deception, including false representation, fraud, forgery, non-disclosure of material facts or failure to cooperate, can result in a refused ILR application. A common example is issues with paying UK taxes, however minor. HMRC and UKVI exchange information regarding taxes paid in the UK, meaning details of your tax history will be accessible to the Home Office. Do not be tempted to claim you are earning the required income on your application if you have not filed that income with the HMRC, as this will be seen as a discrepancy.

If you have had any issues with your tax payments in the past, even if they were subsequently resolved with HMRC, the Home Office may still use these as grounds for refusal of your application for ILR. If you have knowingly unpaid any UK taxes, this will be an automatic refusal.

 

Need assistance?

 

There are many reasons why indefinite leave to remain applications are refused. Whether you have received a refused ILR application and are unsure of your options, or are preparing your ILR application and want to ensure the optimum chance of success, we can help.

DavidsonMorris are specialist UK immigration advisers, supporting individuals throughout the ILR process, from initial applications through to options to challenge the Home Office decision. If you have a question about a refused ILR application, contact us.

 

ILR refused FAQs

 

What happens if my ILR application is refused?

If ILR is refused, the Home Office will issue a refusal letter explaining the reasons for the decision. Depending on the circumstances, options may include an administrative review, an appeal on human rights grounds, or judicial review. If no appeal is available, reapplying with stronger evidence may be necessary.

 

Can I stay in the UK after my ILR is refused?

If you still have valid leave under your current visa, you can remain in the UK until it expires. If your visa has already expired, you may have to leave the UK unless you have grounds to challenge the decision or submit a new application. Overstaying can lead to serious consequences, including future bans on re-entering the UK.

 

Can I appeal an ILR refusal?

Appeals are only available if the refusal is based on human rights grounds. If an appeal is not an option, you may request an administrative review if you believe the Home Office has made an error in applying the rules. Judicial review is another possibility but should only be pursued with legal advice.

 

Can I reapply after my ILR has been refused?

A fresh application may be submitted if the refusal was due to missing documents, tax discrepancies, or failure to meet a specific requirement. Before reapplying, it is advisable to address the issues raised in the refusal and seek professional advice to improve the chances of success.

 

Does an ILR refusal affect future visa applications?

An ILR refusal does not automatically prevent future applications, but it can have an impact if the refusal was due to deception, character concerns, or overstaying. Future applications must fully address the reasons for the previous refusal and demonstrate compliance with all immigration requirements.

 

Glossary

 

 

Term	Definition
Indefinite Leave to Remain (ILR)	A form of permanent residence in the UK, allowing individuals to live and work without immigration restrictions.
Home Office	The UK government department responsible for immigration, visas, and law enforcement.
Refusal Letter	A formal document issued by the Home Office explaining the reasons for rejecting an ILR application.
Administrative Review	A process allowing applicants to request a reconsideration of a Home Office decision if an error is believed to have been made.
Appeal	A legal challenge against an ILR refusal, available only if the decision involves human rights grounds.
Judicial Review	A legal process where a court reviews the lawfulness of a Home Office decision if no other appeal options are available.
Overstaying	Remaining in the UK beyond the expiry of a visa or leave, which can result in a ban from re-entering the country.
Reapplication	Submitting a new ILR application after addressing the reasons for the previous refusal.
Immigration Health Surcharge (IHS)	A fee paid by visa applicants to access NHS services, which may be refunded if an ILR application is refused.
Statutory Excuse	Protection for employers from civil penalties if they have conducted proper right to work checks on employees.
Subject Access Request (SAR)	A request made to HMRC or the Home Office to obtain personal data, such as tax records or immigration history.
Good Character Requirement	A Home Office criterion assessing an applicant’s compliance with UK laws, including tax obligations and criminal history.
Tax Discrepancies	Differences between declared income in visa applications and tax records, which can lead to ILR refusal.
Re-entry Ban	A restriction placed on individuals who overstay or breach immigration rules, preventing them from returning to the UK for a set period.