UK Tightens Rules on Foreign Political Donations Ahead of Election

The government will amend the Representation of the People Bill to impose a £100,000 annual limit on political donations from individuals who have moved to the United Kingdom, applying the restriction for a full calendar year after their arrival. The measure, still pending report stage in the Commons, also introduces stricter tests for corporate donors, linking permissible contributions to post-tax profits over the previous five years rather than revenue.

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Since March, overseas electors—Britons registered to vote abroad—have faced a £100,000 cap on donations. The Rycroft Review, led by former civil servant Philip Rycroft, recommended extending the cap to returning donors, noting that overseas contributions are harder to trace and may be used to circumvent tax obligations. The government has already paused cryptocurrency donations and now accepts all Rycroft recommendations.

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• Reform UK – Nigel Farage’s party, the primary beneficiary of the proposed rule change.

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• Nigel Farage – Leader of Reform UK, whose seat in Clacton could be jeopardised by a standards investigation.

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• Christopher Harborne – Thai-based cryptocurrency billionaire, reported donor of £3 million in a single gift and over £15 million in total to Reform.

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• Ben Delo – Hong-Kong-based crypto magnate, contributed two £2 million lumps totalling £4 million.

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• Steve Reed – Communities Secretary, championing the reforms.

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• Zia Yusuf – Reform UK home affairs spokesman, criticising the opposition.

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• New rule: £100,000 annual cap for returning donors, enforced for at least one calendar year.

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• Harborne’s largest single donation: £3 million; total foreign-linked contributions to Reform reported as £15 million (Harborne) and £18.6 million overall, roughly 80 % of the party’s cash last year.

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• Delo’s contributions: £4 million in two installments.

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• Reform’s total donations this year exceed those of Labour (£4 million) and the Conservatives (£4.2 million); the Green Party received £263,884 and the Liberal Democrats £3,019,235.

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• Companies may face fines up to £20,000 or up to seven years’ imprisonment for breaches.

Mirror - UK

Communities Secretary Steve Reed said the reforms will “shut down dodgy funding, stop foreign money influencing our elections and keep our democracy strong,” adding that the measures constitute “world-leading action to protect the integrity of our elections.” Reform UK’s home affairs spokesman Zia Yusuf accused Labour of “choking off legal funding for its main rival,” framing the cap as a partisan attack.

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Yusuf’s allegation reflects Reform UK’s view that the cap disproportionately harms its fundraising capacity, especially given the party’s reliance on high-value foreign donors. The party’s spokesperson has framed the legislation as a Labour-driven effort to limit Reform’s financial resources.

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Sources differ on the total foreign money received by Reform: one report cites £15 million from Harborne alone, another notes £18.6 million overall with £15 million from offshore links, while a third states Harborne has contributed more than £22 million since 2015. The precise timing of when returning donors will become eligible to exceed the cap remains unclear beyond the “full calendar year” rule.

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• “These tough new rules will shut down dodgy funding, stop foreign money influencing our elections and keep our democracy strong.” — Steve Reed, Communities Secretary

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• “By holding overseas donors to tougher standards and requiring candidates to prove where their funding comes from, we are taking world-leading action to protect the integrity of our elections.” — Steve Reed, Communities Secretary

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• “choking off legal funding for its main rival” — Zia Yusuf, Reform UK home affairs spokesman

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The amendment will return to the Commons for report stage next week. If passed, the cap will become law after the parliamentary process, and parties will need to adjust donor-vetting procedures accordingly. Reform UK and other parties are expected to reassess fundraising strategies in light of the new restrictions.

Mirror - UK