What are Sir Keir Starmer’s new immigration rules?
Sir Keir Starmer has promised to bring down migration numbers by tightening up the rules on those allowed to come to the UK.
The prime minister promised his new plan will reduce net migration – the difference between immigration and emigration – by the end of this parliament in 2029.
Details of the plans have been published in a white paper, a government document that outlines policy proposals before being introduced as legislation.
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Sky News has combed through the white paper to bring you the details.
Language requirements
All visa routes will require people to have a certain level of English proficiency.
People coming with the main visa holders – dependents – will also have to have a basic understanding of English, which they currently do not.
The level of proficiency needed depends on the visa, with a skilled worker visa requiring at least upper intermediate level. Currently, it requires just an “intermediate” level.
To extend visas, people will have to show progression in their English.
Keir Starmer announced the changes at a podium with ‘securing Britain’s future’ on the front. Pic: PA
Settled status
Currently, people have to live in the UK for five years before they can gain settled status.
Under the new plan, they will have to live in the UK for 10 years.
However, “high-contributing” individuals such as doctors and nurses could be allowed to apply for settled status after five years.
A new bereaved parent visa will be created so those in the UK who have a British or settled child that dies can get settled status immediately.
Settled status gives people the right to work and live in the UK for as long as they like, and provides them with the same rights as citizens, such as healthcare and welfare and the right to bring family members to live in the UK.
People with settled status can then choose to apply for British citizenship.
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British citizenship
People can qualify sooner for citizenship by contributing to UK society and the economy, like settled status.
The Life in the UK test will be reformed.
Social care visa
This visa, which allowed care workers to come to the UK due to a shortage, will not exist anymore.
There will be a transition period until 2028 when visa extensions and switching to the visa for those already here will be allowed.
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‘We risk becoming an island of strangers’
Skilled worker visa
People wanting to come to the UK on a skilled worker visa must now have at least an undergraduate university degree. The minimum was previously A-levels.
There will also be tighter restrictions on recruitment from overseas for jobs with “critical” skills shortages, as well as strategies to incentivise employers to increase training and participation rates in the UK.
Very highly skilled people, in areas the government identifies, will be given preferential access to come to the UK legally by increasing the number of people allowed to come through the “high talent” routes such as the global talent visa, the innovator founder visa and high potential individual route.
A limited pool of refugees will be allowed to apply for employment through the skilled worker route.
Skilled worker visas will now require at least a university degree, with preferential access for highly skilled people. Pic: PA
Study visas
People on graduate visas will only be allowed to remain in the UK for 18 months after they finish their studies.
Currently, students finishing degrees can stay for two years if they apply for the graduate visa, or those finishing PhDs can stay for three.
Institutions sponsoring international students will have their requirements strengthened, with those close to failing their sponsor duties placed on an action plan and limits imposed on the number of new students they can recruit.
Sponsors, who can cover tuition fees and living costs, include overseas governments, UK government scholarships, UK government departments, UK universities, overseas universities, companies and charities.
Humanitarian visa
The Ukraine, Hong Kong and Afghanistan humanitarian visa routes will remain.
However, the government will review the effectiveness of sponsorship arrangements for those schemes so businesses, universities and community groups can “sustainably” sponsor those refugees.
The government will continue to support humanitarian visas, such as the Afghanistan one after the Taliban took over Kabul in 2021. Pic: AP
Domestic worker visa
To help prevent modern slavery, the government will reconsider this visa, which currently allows foreign national domestic workers to visit the UK with their employer for up to six months.
Businesses
Companies wanting to bring people from abroad to work for them in the UK will have to invest in the UK first.
To prevent exploitation of low-skilled workers on temporary visas already in the UK, the government will look at making it easier for workers to move between licensed sponsors for the duration of their visa.
The right to family life
A growing number of asylum seekers have used the “right to family life” – Article 8 of the Human Rights Act – to stop their deportation.
Legislation will be introduced to “make clear it is the government and parliament that decides who should have the right to remain in the UK”.
It will set out how Article 8 should be applied in different immigration routes so “fewer cases are treated as ‘exceptional'”.
A group of migrants was brought into Dover by Border Force as the PM announced immigration changes. Pic: PA
Foreign national offenders
The Home Office will be given powers to more easily take enforcement and removal action, and revoke visas in a much wider range of crimes where people did not serve jail time in other countries.
Deportation thresholds will be reviewed to take into account more than just the length of their sentence, with violence against women and girls taken more seriously.
Enforcement
Sir Keir said the immigration rules – at the border and in the system – will be more strongly enforced than before “because fair rules must be followed”.
People who claim asylum, particularly after arriving in the UK, where conditions in their home country have not materially changed, will face tighter controls, restrictions and requirements where there is evidence of abuse of the system.
Other governments will be made to play their part to stop their nationals coming to the UK, or from being returned.
Sponsors of migrant workers or students abusing the system will have financial penalties or sanctions placed on them, and they will be given more support to ensure compliance.
People on short-term visas who commit an offence will be deported “swiftly”.
Scientific and tech methods will be explored to ensure adults coming to the UK are not wrongly identified as children.
eVisas, which have now replaced physical documents, will help tackle illegal working and support raids on those overstaying their visas or on the wrong visa.
Major banks are legally obligated to refuse current accounts to individuals suspected of being in the UK illegally and to notify the Home Office. This will be extended to other financial institutions.
The US government is moving closer to reopening after more than 40 days of being shut down, following several Democratic lawmakers in the Senate siding with Republicans to pass a funding bill.
On Monday, the US Senate held a late-night vote for a bill “continuing appropriations and extensions for fiscal year 2026,” which passed 60 to 40 in the chamber. The bill is expected to fund the government through Jan. 31, 2026, provided it passes in the House of Representatives and is signed into law by President Donald Trump.
As Tuesday is a US federal holiday, the House is not expected to reconvene to vote on the bill until Wednesday at the earliest. Prediction platform Polymarket has already adjusted its expectation that the US government will return to normal operations on Friday, likely following the passage of the House bill.
Amid the government shutdown — the longest in the country’s history — many federal agencies have furloughed staff and reduced operations to align with the lack of funding.
Even if the bill were to immediately pass and be signed into law, it will likely take some time before staff can return to work. The operations plan at the US Securities and Exchange Commission (SEC), for example, will allow employees to come back on the “next regularly scheduled workday following enactment of appropriations legislation.”
Related: China raises alarm over alleged US role in one of the largest Bitcoin hacks
Digital asset market structure negotiations proceeding
On Monday, the leadership of the Senate Agriculture Committee released a discussion draft of a comprehensive bill on crypto market structure. The draft followed weeks of reported negotiations between Democratic and Republican lawmakers, about four months after the House passed its version of the legislation.
The shutdown likely helped slow progress on the bill, which Republican leaders initially expected to be out of the Agriculture Committee and Banking Committee by the end of October and signed into law by 2026.
Though Republicans still have a path forward to enact the legislation, North Carolina Senator Thom Tillis warned that pushing the passage beyond January or February could make the bill vulnerable amid the 2026 midterm campaigns.
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Key takeaways:
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Bitcoin gifts aren’t immediately taxable. The IRS treats cryptocurrency as property, so recipients generally don’t owe income tax on the gift.
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Stay within the 2025 exclusion limit. You can gift up to $19,000 per person, or $38,000 for spouses splitting gifts, without triggering Form 709.
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Recipients inherit the donor’s cost basis. Future taxes depend on the donor’s original purchase price, not the cryptocurrency’s value at the time of the gift.
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Keep detailed records to avoid IRS issues. Document the fair market value, transaction date and wallet details to make your gift audit-proof.
Bitcoin has become a popular gift for birthdays, holidays or simply to share enthusiasm for cryptocurrency. Under US tax law, gifting Bitcoin (BTC) is not an immediate taxable event. The recipient owes no income tax, and the donor typically owes no gift tax if the gift’s value is within the annual exclusion limit.
The Internal Revenue Service (IRS) treats digital assets as property, not currency. This means Bitcoin gifts fall under the same framework as stocks or real estate. They follow property rules, require valuation at the time of transfer, and may need to be reported on Form 709 if the annual exclusion limit is exceeded.
In short, you can gift Bitcoin without creating an immediate tax obligation. However, poor documentation or misunderstanding basic rules can still cause problems later.
What counts as a gift?
A cryptocurrency gift must be a true transfer of ownership. You give up control and receive nothing in return. The 2025 annual exclusion allows up to $19,000 per recipient, or $38,000 for spouses using gift splitting, without filing Form 709. Exceeding that threshold does not automatically create a tax liability, but the form must still be filed.
Gifts between US citizen spouses are unlimited. For non-citizen spouses, the 2025 limit is about $190,000. Transfers to non-residents or certain trusts may have additional requirements.
Not every transfer qualifies as a gift under IRS rules: Only those made out of genuine generosity without expectation of repayment or services.
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Paying someone’s tuition or medical bills directly is exempt from gift tax.
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Moving cryptocurrency between your own wallets does not count as a gift.
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Transfers labeled as “gifts” that are actually payments for services are treated as income, not generosity.
When Form 709 kicks in
Form 709, the United States Gift (and Generation-Skipping Transfer) Tax Return, is how the IRS tracks gifts that exceed the annual exclusion limit. Most people never owe gift tax, but some transfers still require filing.
You must file Form 709 if:
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Your gifts to any one person exceed $19,000 in 2025, the annual exclusion amount.
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You make a future-interest gift in which the recipient cannot immediately use or benefit from the asset.
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You and your spouse elect to split gifts to double the exclusion, which requires both spouses to file Form 709.
You do not need to file if:
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All gifts stay within the annual exclusion and qualify as present-interest transfers.
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Gifts to a US citizen spouse or a qualified charity are fully excluded from filing as long as you transfer complete ownership and control.
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All gifts go to qualified charities where you transfer full ownership.
Did you know? Form 709 is due by April 15 of the year after the gift. A separate form must be filed for each year, and filing doesn’t necessarily mean tax is owed. The 2025 lifetime exemption of $13.99 million typically covers most reportable gifts.
In practice, if you keep cryptocurrency gifts under the annual limit and document the fair market value on the date of transfer, you will likely avoid filing altogether.
Basis and the “dual-basis” trap for recipients
Receiving Bitcoin as a gift is not immediately taxable, but your future capital gains tax depends on the basis and holding period you inherit from the donor.
Carryover basis
You generally inherit the donor’s original cost basis and their holding period. If they bought Bitcoin for $5,000 and gifted it when it was worth $20,000, your basis would be $5,000. When you later sell, you will owe capital gains tax on the difference between your sale price and that basis.
Dual-basis rule
If the gift’s market value is lower than the donor’s basis at the time of transfer, two different bases apply:
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For gains, use the donor’s original basis.
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For losses, use the fair market value (FMV) at the time of the gift.
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If you sell between those two values, no gain or loss is recognized.
Early Bitcoin adopters often have very low cost bases, so recipients of appreciated coins can face significant future tax liabilities. Conversely, gifts of Bitcoin worth less than the donor’s basis limit potential loss deductions. If the donor pays gift tax, part of that payment may increase the recipient’s basis.
Obtain the donor’s purchase date, cost basis, the fair market value on the gift date and whether any gift tax was paid before selling. These details determine whether your next Bitcoin sale results in a taxable gain, a deductible loss or no gain or loss.
Crypto-specific pitfalls to avoid
Most cryptocurrency gifts follow standard property rules, but digital assets introduce additional risks that can trigger audits or disqualify deductions.
1. Turning a gift into a sale
If you sell or swap cryptocurrency before transferring it, the transaction counts as a taxable disposition, not a gift. To qualify as a true gift, you must transfer the asset directly, receive nothing in return and permanently give up control.
2. Poor valuation or missing records
Always document the fair market value (FMV) on the date of transfer, along with your original cost basis, purchase date and transaction IDs. Without proper records, the IRS may challenge the reported value or the recipient’s later gain or loss calculation.
3. Gifts that are really income
If cryptocurrency is given in exchange for services to an employee, contractor or influencer, it counts as compensation, not a gift. This makes it taxable income for the recipient and may subject the sender to payroll or self-employment taxes.
4. Cross-border and non-citizen issues
International gifts or transfers involving foreign wallets may require filing Form 3520 and other disclosures. Gifts to non-US-citizen spouses are capped at about $190,000 in 2025 unlike the unlimited exclusion for US-citizen spouses.
Miss one of these rules, and a generous gesture could quickly become a taxable event.
Simple steps to prevent tax trouble
Gifting or donating cryptocurrency in 2025 can be simple if you follow a few key steps:
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Stay within limits: Keep each recipient’s total gifts at or below $19,000 ($38,000 if splitting with a spouse). If you exceed that amount, file Form 709. You will likely still owe no tax unless you surpass the lifetime exemption.
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Know what you’re passing on: The recipient inherits your cost basis and holding period. Their future tax bill depends on your original purchase price, not the value on the date of the gift.
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Record everything: Keep records of the transfer date, fair market value, your original cost basis and acquisition date, and the wallet or transaction ID. Proper documentation protects both parties if the IRS requests verification.
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Gift, don’t sell: Selling or swapping cryptocurrency before gifting makes the transfer a taxable disposition. Transfer the asset directly instead.
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For charity: Donations exceeding $5,000 require a qualified appraisal, not just an exchange screenshot. Confirm that the charity can accept cryptocurrency before sending.
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Watch cross-border gifts: Foreign recipients and non-citizen spouses face lower exclusions and additional reporting requirements.
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Seek professional advice for large or complex transfers: High-value gifts, multi-signature wallets and trusts can create unique compliance challenges.
Before you gift Bitcoin
Most Bitcoin gifts fall safely within IRS limits, and no immediate tax is due. The risk usually arises later when the recipient sells. Because the donor’s basis carries over, gains or losses depend on that original value, not the market price at the time of gifting.
Handled properly, gifting Bitcoin is a straightforward way to share cryptocurrency wealth without tax complications. Keep detailed records, respect the thresholds and confirm that the transfer qualifies as a true gift. Generosity should not come with a surprise tax bill, and with the right steps, it will not.
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