Dear Waheed

Thanks for your prompt reply. I went in person to get our residency status. So I don't have any home office letter. My worry is when we will apply for british passport next Jan 2007 whether this will cause any problem in applying the passport. Is there any web address where I can get the information regarding the transfer of visa?

Thanks.

Hasan

If you need a Home office reference then
you might have to dig their Web site but from my experience and knowledge your
old passport and new passport is only for them to identify you and not
penalized you for not paying them money for transfer of ILR sticker.

There is a discussion group on Workpermit,
you can check similar case at this location:

http://www.immigrationboards.com/viewtopic.php?p=12190&sid=78a2978381e09bcb9cb02accf69219c1

You will not need your current passport for
applying British Passport as you will get a Nationality Certificate and they
will use that certificate to issue you British passport. When you apply for
nationalization they will sort out everything and will return your passports
without putting anything in it. Once your application for nationalization is
approved and Home Office has issued you the certificate, they wash their hands
off your native country?s passport. Don?t
worry if you are applying for nationalization in January

"You will not need your current passport for applying British Passport as you will get a Nationality Certificate and they will use that certificate to issue you British passport. When you apply for nationalization they will sort out everything and will return your passports without putting anything in it. Once your application for nationalization is approved and Home Office has issued you the certificate, they wash their hands off your native country?s passport. Don?t worry if you are applying for nationalization in January"

The Passport website states that you are required to submit, with your application, your passport with which you entered the UK. If you have more than one, because for example you changed your surname, it would probably be best to submit both. They should be returned to you if your home country supports dual citizenship. 

Apologies, my typing fingers were running ahead of my brain! How unusual, it's usually my mouth!

What I was trying to explain was that you DID (unlike previous advice) need to submit your passport that you entered the UK with and if there were any name changes you might need your current passport or documentation showing the name change.