UK rules curb donations from new residents, hit Reform UK backers

Ministers unveiled rules that cap donations from people in their first year of UK residency, tighten tests on company donors and pause political donations in cryptocurrency. The package follows an independent review into foreign financial influence and builds on reforms introduced in March.

The changes extend the existing £100,000 cap on overseas donations so it applies to a new resident’s first 12 months. Company donations must now be assessed on post-tax profits measured over five years rather than on revenue. Candidates will need to show that any funds received before a campaign began came from legitimate sources.

The government has imposed an immediate moratorium on political donations in cryptocurrency while the rules are finalised. Parties must return any crypto received within 30 days, and the ban is being applied retrospectively from the announcement date. The bill is due back in the House of Commons next week for its final stages.

The rules could affect two prominent backers of Reform UK. Christopher Harborne, based in Thailand, has donated about £12 million to the party and has registered to vote in the UK. Ben Delo, based in Hong Kong and a co-founder of an exchange, has given roughly £4 million and has said he intends to relocate to Britain; under the new residency cap his donations would be limited to £100,000 during his first year as a UK resident. Neither donor’s contributions were made in cryptocurrency.

Parliamentary authorities are examining a reportedly undeclared £5 million gift linked to Harborne. Separately, an MP has asked the Parliamentary Standards Commissioner to investigate whether Nigel Farage failed to declare in-kind support from George Cottrell, a long-standing associate. Cottrell pleaded guilty to wire fraud in the United States and is seeking a pardon; investigators have also associated him with offshore gambling operations and large wagers on prediction markets, including a reported loss of more than $550,000 on a single bet.

Campaign teams and party lawyers are reviewing the practical implications of the new rules. Parties will need to document the provenance of funds both before and after the rules take effect. Some companies that met previous revenue-based tests may not meet the new profit-based threshold.

The government says the measures aim to protect the integrity of UK elections by limiting immediate access to large donations from recent arrivals and by tightening scrutiny of corporate donors. Reform UK maintains the donations complied with the law, stating ‘no rules were broken.’