As a result of the act, all who were British Overseas Territories citizens (apart from those solely connected with the Cyprus Sovereign Base Areas) immediately prior to 21 May 2002 automatically became full British citizens on that date (previously full British citizenship was either automatically accorded or granted without conditions on request only to people from Gibraltar and the Falkland Islands).

Although it was possible for BOTCs to voluntarily acquire British citizenship under the previous provisions of British Nationality Act 1981 through section 4 registration by meeting UK residency and good character requirements prior to 2002, the enactment of the 2002 act means that every BOTC who was not already a British citizen on enactment day automatically acquired that status without satisfying residency and character requirements.

[1] This, effectively, means that BOTCs are in a unique position of simultaneously holding two forms of British nationality.

The only exception to this are for those connected solely with the sovereign military bases in Cyprus, and those who acquired BOTC status voluntarily (i.e., through naturalization) after 21 May 2002.

While BOTCs of all the Overseas Territories (except the Sovereign Base Areas) are now either British citizens or eligible to acquire British citizenship (and therefore gain right of abode in the UK by virtue of being a British citizen), British citizens visiting Overseas Territories are still subject to local immigration controls and are, in most cases, given limited leave to remain by the territory's immigration officers.