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No, it is the wrong form. SET(M) is ONLY for those who hold a spouse settlement (FLR M) visa and NOT for PBS Dependants. Set(M) will be refused as she doesn't qualify for ILR on this form. If refused, HO might put her on the FLR(FP) route and ask you to pay IHS, which will reset her clock to zero for ILR.She has used the SET M form to complete her application.
Is it the right form to have used please ?
Any new application will be considered as variation of the previous one