It now states that although an individual who applies for naturalisation abroad is free of immigration time restrictions, if the application has been so made simply to avoid this requirement, then the application will be refused.
Nationality instructions > Volume 1: The British Nationality Act 1981 - caseworking instructions > Chapter 18: Naturalisation at discretion - Annex B - section 7.3
https://www.gov.uk/government/uploads/s ... dments.pdfHowever, it would be contrary to the spirit of the Act to allow an application to succeed when the sole or main purpose in applying from abroad was to circumvent the requirement about freedom from immigration time restrictions - in other words where, had s/he remained in the United Kingdom at the relevant date, the applicant would have failed to qualify because s/he would then have had only a limited leave or conditional right to be in the UK. Any such cases should be referred initially to a SCW to consider whether refusal would be appropriate. When refusing an application on this basis, the following explanation may be offered: “The Secretary of State is not obliged to naturalise a person who meets the requirements in Schedule 1 to the 1981 Act, and will not normally be prepared to do so if it appears to her that the sole or main purpose in applying from outside the United Kingdom was to circumvent the requirement for the applicant to be free, on the date of application, from any restriction."