[2023] UKSC 46
On appeal from: [2021] EWCA Civ 1909; and
[2022] EWCA Civ 1147
JUDGMENT
R (on the application of Afzal) (Appellant) v Secretary of State for the Home Department (Respondent)
R (on the application of Iyieke) (Appellant) v Secretary of State for the Home Department (Respondent)
before
Lord Reed, President
Lord Kitchin
Lord Sales
Lord Burrows
Lord Stephens
28 November 2023
Heard on 7 and 8 June 2023
Appellants
Zainul Jafferji
Arif Rehman
Huzefa Broachwalla
Sheraaz Hingora
(Instructed by Abbotts Solicitors (Luton))
Respondent
Lisa Giovannetti KC
Ben Keith
(Instructed by Government Legal Department (Immigration))
LORD SALES (with whom Lord Reed, Lord Kitchin, Lord Burrows and Lord Stephens agree):
Introduction
There are two appeals before the court. In each case the appeal concerns the question whether the appellant (Mr Afzal and Mr Iyieke, respectively) is entitled to be granted indefinite leave to remain in the United Kingdom (“ILR”) by virtue of section 3C of the Immigration Act 1971 (“section 3C”), para 276B of the Immigration Rules (Statement of Changes in Immigration Rules (1994) (HC 395)) (“para 276B”) and the respondent Secretary of State’s Long Residence Policy Guidance (2016) (“the Guidance”).
In order to provide an answer in Mr Afzal’s case it is necessary to consider the effect of the judgment of this court in R (Mirza) v Secretary of State for the Home Department [2016] UKSC 63; [2017] 1 WLR 85 (“Mirza”) and the Immigration (Health Charge) Order 2015 (SI 2015/792) (“the 2015 Order”). The answer in Mr Iyieke’s case depends upon the proper interpretation of para 276B(v)(a).
The factual background in Mr Afzal’s case
Mr Afzal is a national of Pakistan, born on 12 June 1986. He first entered the United Kingdom on 24 February 2010 with leave as a Tier 4 (student) which was valid until 14 April 2013.
On 12 December 2012, before the expiry of his leave, Mr Afzal applied for further leave to remain as a Tier 1 (Highly Skilled Migrant). On 17 April 2013 that application was refused with an in-country right of appeal. Mr Afzal appealed to the First-tier Tribunal and his appeal was allowed on human rights grounds on 19 November 2013. By a fresh decision dated 14 July 2014 the Secretary of State granted him leave to remain until 14 July 2017.
On 6 July 2017, before the expiry of that leave, Mr Afzal submitted an application for further leave to remain along with an application for waiver of the relevant fee. On 18 October 2017 the Secretary of State rejected Mr Afzal’s application to waive the fee and notified him that he had to pay the applicable fee together with the Immigration Health Surcharge (“the IHS”) payable pursuant to the 2015 Order. The IHS is a sum payable in respect of having access to healthcare services in the United Kingdom for the period during which the applicant is expected to remain here.
At the hearing Mr Zainul Jafferji, for Mr Afzal, sought to contend that Mr Afzal had not received the notice sent on 18 October 2017 requiring him to pay the fee and the IHS. However, this was not disputed in the proceedings below and the agreed statement of facts and issues for this court indicated that he had indeed been notified on 18 October 2017 that he had to pay the fee and the IHS. It is not for this court to go behind the agreed statement of facts and issues, nor is it appropriate for this court to resolve disputes on issues of fact which are raised for the first time on an appeal. Accordingly, the appeal has proceeded on the basis as set out in the agreed statement of facts and issues.
On 1 November 2017 Mr Afzal paid the fee for his application for leave to remain, but he omitted to pay the IHS as required. On 8 November 2017 the Secretary of State wrote to him to remind him to pay the IHS within 10 days. Mr Afzal maintains that he did not receive this letter. The Secretary of State does not accept this. But, as explained below, this has no legal significance and it is not necessary for the court to resolve this dispute.
Since the IHS remained unpaid, on 22 January 2018 the Secretary of State wrote to Mr Afzal to give him notice that his application for further leave to remain had been rejected. Mr Afzal accepted this and took no steps to bring proceedings to challenge this decision.
Instead, on 2 February 2018 (that is, after his extant leave to remain had expired on 14 July 2017) Mr Afzal made a fresh application for further leave to remain, accompanied by payment of the relevant fee and the IHS. On 5 September 2019 the Secretary of State granted this application, with leave to remain until 4 March 2022.
On 28 February 2020, having resided in the United Kingdom for more than 10 years, Mr Afzal applied for ILR pursuant to para 276B on the ground of long residence here, relying so far as necessary on section 3C. On 11 March 2020 the Secretary of State refused his application on the grounds that there was a gap in his continuous lawful residence in the United Kingdom by reason of him over-staying the leave granted to him on 14 July 2014, which had expired on 14 July 2017, and only being granted fresh leave to remain on 5 September 2019. His presence in the United Kingdom between 14 July 2017 and 5 September 2019 had been unlawful as being without leave to remain. After a review, on 5 June 2020 the Secretary of State confirmed her decision. This is the decision under challenge in the proceedings in Mr Afzal’s case.
On 11 June 2020 Mr Afzal issued a judicial review claim to challenge the Secretary of State’s decision. Permission to claim judicial review was refused by the Upper Tribunal. Mr Afzal appealed to the Court of Appeal (Peter Jackson and Males LJJ and Sir Patrick Elias) which granted him permission to apply for judicial review but dismissed his claim on the merits: [2021] EWCA Civ 1909; [2022] 4 WLR 21. Mr Afzal now appeals to this court.
The factual background in Mr Iyieke’s case
Mr Iyieke is a national of Nigeria, born on 7 June 1983. He first entered the United Kingdom on 13 February 2011 with leave to enter as a Tier 4 (General) Student until 30 November 2012. Before the expiry of that leave he submitted an application for further leave to remain which was granted until 9 August 2014. Mr Iyieke did not submit a further application to extend his leave beyond that date and thus became an overstayer on 10 August 2014.
On 2 September 2014 Mr Iyieke submitted an out of time application for leave to remain on compassionate grounds. The application was submitted within the grace period of 28 days permitted at that time by the Immigration Rules for applications by overstayers to regularise their position. The application was refused on 29 October 2014 without any right of appeal.
On 26 February 2015 Mr Iyieke submitted an application for leave to remain on family and private life grounds. His application was refused on 10 June 2015 with a right of appeal to the First-tier Tribunal. His appeal to the First-tier Tribunal was dismissed but his further appeal to the Upper Tribunal was allowed.
In the light of this, on 11 August 2017 the Secretary of State granted Mr Iyieke leave to remain outside the Immigration Rules until 11 February 2020. Before the expiry of that leave he made an application for further leave to remain which was granted until 30 July 2022.
On 17 February 2021, having been resident for more than 10 years in the United Kingdom, Mr Iyieke applied for ILR pursuant to para 276B(v). On 13 June 2021 the Secretary of State refused his application. This is the decision under challenge in the proceedings in Mr Iyieke’s appeal.
On 10 September 2021 Mr Iyieke commenced a claim for judicial review to challenge the Secretary of State’s decision. Permission to apply for judicial review was refused at first instance by the Upper Tribunal. On appeal, the Court of Appeal (Arnold, Dingemans and Warby LJJ) granted such permission, but dismissed the claim on the merits: [2022] EWCA Civ 1147. Mr Iyieke now appeals to this court.
The Immigration Rules
At the material times, the Immigration Rules made provision in relevant part for the grant of ILR on the ground of long residence in the United Kingdom as follows. The Immigration Rules dealt with the topic of the grant of leave to remain on the ground of long residence in a chapter comprising paras 276A-276D. An applicant for leave to remain on the ground of long residence had to meet each of the requirements in para 276B(i)-(ii) and (v) (para 276A1). An extension of leave on the ground of long residence was to be refused if the Secretary of State was not satisfied that the requirement in para 276A1 was met (para 276A4). Para 276C stated that ILR could be granted provided that the Secretary of State was satisfied that each of the requirements of para 276B was met. Para 276D provided that she should not grant ILR if she was not so satisfied.
Para 276A set out relevant definitions. These include the following:
‘continuous residence’ means residence in the United Kingdom for an unbroken period, and for these purposes a period shall not be considered to have been broken where an applicant is absent from the United Kingdom for a period of 6 months or less at any one time, provided that the applicant in question has existing limited leave to enter or remain upon their departure and return, but shall be considered to have been broken if the applicant:
has been removed under Schedule 2 of the 1971 Act, section 10 of the 1999 Act, has been deported or has left the United Kingdom having been refused leave to enter or remain here; or
has left the United Kingdom and, on doing so, evidenced a clear intention not to return; or
left the United Kingdom in circumstances in which he could have had no reasonable expectation at the time of leaving that he would lawfully be able to return; or
has been convicted of an offence and was sentenced to a period of imprisonment or was directed to be detained in an institution other than a prison (including, in particular, a hospital or an institution for young offenders), provided that the sentence in question was not a suspended sentence; or
has spent a total of more than 18 months absent from the United Kingdom during the period in question.
‘lawful residence’ means residence which is continuous residence pursuant to:
existing leave to enter or remain; or
temporary admission within section 11 of the 1971 Act (as previously in force), or immigration bail within section 11 of the 1971 Act, where leave to enter or remain is subsequently granted; or
an exemption from immigration control, including where an exemption ceases to apply if it is immediately followed by a grant of leave to enter or remain.
‘lived continuously’ and ‘living continuously’ mean ‘continuous residence’, except that paragraph 276A(a)(iv) shall not apply.”
Para 276B provided as follows:
(a) he has had at least 10 years continuous lawful residence in the United Kingdom.
having regard to the public interest there are no reasons why it would be undesirable for him to be given indefinite leave to remain on the ground of long residence, taking into account his:
age; and
strength of connections in the United Kingdom; and
personal history, including character, conduct, associations and employment record; and
domestic circumstances; and
compassionate circumstances; and
any representations received on the person's behalf; and
the applicant does not fall for refusal under the general grounds for refusal.
the applicant has demonstrated sufficient knowledge of the English language and sufficient knowledge about life in the United Kingdom, in accordance with Appendix KoLL.
the applicant must not be in the UK in breach of immigration laws, except that, where paragraph 39E of these Rules applies, any current period of overstaying will be disregarded. Any previous period of overstaying between periods of leave will also be disregarded where –
the previous application was made before 24 November 2016 and within 28 days of the expiry of leave; or
the further application was made on or after 24 November 2016 and paragraph 39E of these Rules applied.”
“The requirements to be met by an applicant for indefinite leave to remain on the ground of long residence in the United Kingdom are that:
Para 39E of the Immigration Rules (“para 39E”) stated:
the application was made within 14 days of the applicant’s leave expiring and the Secretary of State considers that there was a good reason beyond the control of the applicant or their representative, provided in or with the application, why the application could not be made in-time; or
the application was made:
following the refusal of a previous application for leave which was made in-time; and
within 14 days of:
the refusal of the previous application for leave; or
the expiry of any leave extended by section 3C of the Immigration Act 1971; or
the expiry of the time-limit for making an in-time application for administrative review or appeal (where applicable); or
any administrative review or appeal being concluded, withdrawn or abandoned or lapsing.”
“This paragraph applies where:
Para 34 of the Immigration Rules stated that an application was valid when the requirements set out in that paragraph were met. Those requirements included, at subparagraph (4), that where an applicant was required to pay the IHS, it had to be paid in accordance with the process set out on the relevant pages of the government website.
Para 34A of the Immigration Rules stated that, subject to para 34B, where an application for leave to remain did not meet the requirements of para 34, “it is invalid and will not be considered”. Para 34B made provision for the Secretary of State to notify an applicant, who had not met the requirements of para 34, to give them one opportunity to do so within 10 working days. Failure to pay within that time would mean that “the application is invalid and will not be considered” (para 34B(3)), but this was subject to para 34B(4) which provided that the Secretary of State “may exercise discretion to treat an invalid application as valid as long as the requirements of paragraph 34(3), (5) and (10) have been met.” Para 34B(5) provided that “Notice of invalidity will be given in writing and served in accordance with Appendix SN of these Rules”.
Appendix SN to the Immigration Rules (“Appendix SN”) deals with the service of notices under the Rules. Paras SN1.2-SN1.11 set out how notices, including a notice in writing that an application for leave to remain is invalid, may be given and various presumptions about when a notice sent by post is deemed to have been received “unless the contrary is proved” (para SN1.9).
Section 3C of the Immigration Act 1971
Section 3C was added to the 1971 Act by amendment by the Nationality, Immigration and Asylum Act 2002. So far as is relevant, it provides:
This section applies if—
a person who has limited leave to enter or remain in the United Kingdom applies to the Secretary of State for variation of the leave,
the application for variation is made before the leave expires, and
the leave expires without the application for variation having been decided.
The leave is extended by virtue of this section during any period when—
the application for variation is neither decided nor withdrawn …”
“3C. Continuation of leave pending variation decision
The 2015 Order
The 2015 Order governs the requirement to pay an IHS charge. Article 3(1) provides that a person who applies for certain forms of entry clearance under the Immigration Act 2014 or for leave to remain in the United Kingdom for a limited period “must pay a charge to the Secretary of State, subject to article 7.” In this context, entry clearance means leave to enter the United Kingdom granted by an entry clearance officer on an application made from outside the United Kingdom and leave to remain means leave to remain granted by the Secretary of State on an application made within the United Kingdom.
Article 4 gives effect to Schedule 1 to the Order, which sets out the amount of IHS payable in respect of each application for entry clearance or for leave to remain. Article 5 states when an IHS charge must be paid:
When a charge must be paid
A person required by article 3 to pay a charge must pay the amount required when the person applies for entry clearance or leave to remain, as applicable.
A charge is only paid as required by paragraph (1) where the person does not cancel or otherwise reclaim that payment subsequently, and provided the charge has not been wholly refunded under article 8.”
Article 7 makes provision for certain exemptions from the requirement to pay the IHS. They are not relevant on these appeals. Article 8, headed “Reduction, waiver or refund”, states: “The Secretary of State has discretion to reduce, waive or refund all or part of a charge” (ie the IHS).
Article 6 is of particular significance for the purposes of the appeal in Mr Afzal’s case. So far as relevant, it provides:
Consequences of a failure to pay a charge
Where a person required by article 3 to pay a charge fails to pay the required amount in accordance with article 5, and the entry clearance or leave to remain, as applicable, has not yet been granted or refused, subject to paragraph (2)—
an entry clearance officer or the Secretary of State, as applicable, may request that the person pays the outstanding charge;
the person must pay the outstanding charge—
in the case of an application for entry clearance, within 7 working days beginning with the date when the request for the payment under sub-paragraph (a) is sent in writing or made by telephone or in person, or
in the case of an application for leave to remain, within 10 working days beginning with the date when the request for the payment under sub-paragraph (a) is sent in writing or made by telephone or in person;
if the outstanding charge is not paid within the time period mentioned in—
sub-paragraph (b)(i), the application for entry clearance must be refused by an entry clearance officer, or
sub-paragraph (b)(ii), the application for leave to remain must be treated as invalid by the Secretary of State, as applicable.
Where a person makes an application for entry clearance or leave to remain and, before the application has been granted or refused, cancels or otherwise reclaims the amount of the charge, the application for entry clearance or leave to remain, as applicable, must be refused by the entry clearance officer or the Secretary of State. …”
The 2015 Order was placed before Parliament, accompanied by an Explanatory Memorandum. Under the heading “Consequences of a failure to pay the charge”, para 7.9 of the Explanatory Memorandum stated:
“Payment of the charge will be a mandatory requirement for affected migrants. Where an applicant fails to pay the right amount of charge, they will be given the opportunity to rectify their payment within a specified time frame. If the outstanding charge is not paid within that specified period, however, the application will be refused or treated as invalid as appropriate, in accordance with established practice where the person does not pay the correct visa fee.”
The difference between an application being refused and an application being treated as invalid, as referred to in article 6(1)(c), was a feature of established practice in 2015. The validity requirements under para 34 of the Immigration Rules for a valid application for leave to remain in the United Kingdom did not apply to applications made overseas seeking entry clearance. For the latter type of application, eligibility requirements were applicable and if not satisfied the appropriate response was that the application would be refused by an entry clearance officer located abroad rather than treated as invalid. If the relevant charge was paid at the time of the application but was then cancelled, as had been experienced in relation to payment of other visa fees by use of credit cards (as explained in para 7.10 of the Explanatory Memorandum), then article 6(2) provided that both where the application was for entry clearance and when it was for leave to remain the response was that it had to be refused. So far as concerns an application for entry clearance, this was on the basis that in such a case the application itself was valid but fell to be refused.