I don't believe from my understanding that overstaying in the last 10 years would be automatically disregarded as far as one has ILR from the new guidance - there is a whole section in the link you posted about it. I highlighted some relevant sections below. Maybe you refer to the part where they now assume the lawful residence requirement was met in the 5 years qualifying period if one has ILR? That is not the same as disregarding immigration breaches in the last 10 years. Do you have a more precise scenario in mind?
Immigration breaches
An immigration breach is where a person has failed to comply with immigration requirements, for example:
failing to comply with conditions attached to a grant of permission to enter or stay in the UK
accessing public funds when prohibited from doing so
failing to report without reasonable excuse, when required to do so
assisting illegal immigration
working in the UK without permission to do so (illegal working)
hiring illegal workers
Failing to comply with immigration requirements within the 10 years before the date of decision will normally be a reason to refuse an application for British citizenship on the grounds of not meeting the good character requirement.
Abuse of immigration requirements may also occur if a person enters or remains in the UK for a purpose other than that for which they were given leave to enter or remain. For example, where a person is found to be working full time in the UK having entered the UK as a Tier 4 student and having failed to undertake or complete the course of study for which the leave was given.
Discretion relating to children
When assessing a child’s good character, it will normally be appropriate to disregard immigration breaches if it is accepted this was outside of their control. For example, where a parent applied for the child to come to the UK as their dependant but failed to apply for an extension of leave when the child’s temporary leave expired, the child should not be penalised.
Lawful residence
An immigration breach relating to lawful residence includes overstaying, illegal entry and absconding.
Prior to 28 June 2022, immigration breaches in the 5-year period before a citizenship application were normally a reason for refusal of citizenship on the grounds of not meeting the lawful residence requirement set out in section 4 and section 6 (read with paragraphs 1 and 2 of Schedule 1) of the British Nationality Act (BNA) 1981. If the breach was in the 10-year period before a citizenship application, it was normally grounds for refusal of citizenship on the basis of not meeting the good character requirement.
Schedule 1 of the Nationality and Borders Act 2022 (NABA 2022) amended the requirements for naturalisation and registration for British citizenship under sections 4(2), 6(1) and 6(2) of the BNA 1981, so that a person can be treated as meeting the lawful residence requirement during the qualifying period without further enquiry where they hold indefinite leave to enter or remain in the UK. This change commenced on 28 June 2022.
This change does not extend to applications to naturalise as a British overseas territory citizen.
To align with changes to the qualifying period, where a person has committed immigration breaches relating to:
illegal entry
absconding
overstaying
may be disregarded when assessing good character during the 10-year period prior to the application, but only where all of the following factors apply:
the person is applying for naturalisation as a British citizen, or registration as a British citizen under s.4(2), 6(1) or 6(2) of the BNA 1981 after 28 June 2022
that person holds indefinite leave to enter or remain (ILE or ILR, also known as settlement) in the UK
no concerns (for example, regarding the person’s character) have arisen since the grant of settlement which might cast doubt on the decision
Therefore, applications where it remains appropriate to consider immigration breaches relating to lawful residence, alongside other good character factors, may include but are not limited to:
where historic information has come to light which, had it been known at the time of granting settlement, may have led to refusal
where something occurred after the grant of settlement to indicate revocation of that status may be appropriate
applications to naturalise as a British overseas territory citizen
Immigration breaches that do not relate to lawful residence (for example working in breach of conditions, hiring illegal workers, or failure to observe reporting requirements) must still be considered.
See Naturalisation as British citizen by discretion
Overstaying
Where you are not disregarding immigration breaches relating to lawful residence, if a person has previously overstayed permission to enter or stay in the UK, it will normally be appropriate to refuse the application for citizenship, unless it is the sole adverse factor weighing against the person’s good character; and either:
the person’s application for leave to remain was made on or after 24 November 2016, and the application did not fall for refusal on the grounds of overstaying because an exception under paragraph 39E of the Immigration Rules applied
the period without leave was not the fault of the applicant, for example where it arose from a Home Office decision to refuse which is subsequently withdrawn or quashed or which the courts have required the Home Office to reconsider
For information on dealing with breaches of conditions see liability to administrative removal.
Illegal entry
Where you are not disregarding immigration breaches relating to lawful residence, if a person has previously entered the UK illegally, it will normally be appropriate to refuse the application for citizenship if the illegal entry is confirmed as having occurred during the preceding 10 years. If the date of entry cannot be confirmed, or if the person subsequently goes to ground, or absconds, the period of 10 years starts from the date on which the person last brought themselves to or came to the attention of the Home Office.
Failure to comply with immigration requirements may be evidenced by service of a notice of liability to administrative removal. The IS151A liability to administrative removal notice was replaced on 6 April 2015 by a RED.0001 form, or where an application is also being refused at the same time, by a single decision notice which incorporates a notice of liability to removal. However, given the length of residence an applicant requires in order to apply for citizenship, IS151As will continue to be relevant until early 2025. This can show that a person came to notice as someone who breached the conditions of their leave, remained in the UK unlawfully without leave, or entered the UK illegally. Relevant Home Office database records such as Atlas, should be checked to see why the liability notice was served.
Where a person was previously granted refugee status, please also refer to overstaying and illegal entry: additional consideration for refugees.
For further information on illegal entrants see Irregular or unlawful entry and arrival.
Absconders
A person given temporary admission, temporary release, bail or release on a restriction order may be required to report at stipulated intervals to a port of entry or to an immigration reporting centre. A person who fails to comply with any reporting restrictions, thus no longer maintaining contact with the Home Office so that their whereabouts are unknown, may become subject to absconder action.
Evidence of absconding may be apparent from Atlas or other relevant database records, or Police National Computer records.
Where you are not disregarding immigration breaches relating to lawful residence, if a person has previously absconded, it will normally be appropriate to refuse the application for citizenship for a period of 10 years from the date they last brought themselves or came to the attention of the Home Office after having absconded.
For further information see non-compliance and absconder process instructions and Border Force absconder guidance.
All advice comes from personal research and experience and should not be regarded as professional opinion.
