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UK political donors could face tougher residency rules

UK government plans tighter residency rules for political donors and a £100,000 cap following a £72m donation row involving Reform UK.

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Inewgen
15 Sep 2026Source: BBC Politics3 min read (0 views)
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UK political donors could face tougher residency rules

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  • UK government plans to tighten residency requirements for political donors.
  • Move follows a £72m donation controversy to Reform UK from two crypto-billionaires.
  • Proposed rules include a £100,000 cap and a minimum 12-month UK residency period.

The UK government is planning to tighten residency rules for political donors to ensure that individuals contributing significant amounts of money genuinely reside in the country. This announcement follows a major political row over a total of £72 million donated to Reform UK by two British crypto-billionaires who had both recently lived abroad.

Nigel Farage, leader of Reform UK, stated that the donations from Ben Delo and Christopher Harborne were one hundred percent compliant with current laws, though he could not guarantee they would remain permissible under proposed regulatory changes. The government intends to modify laws governing donations from British voters living overseas, including the introduction of a backdated £100,000 cap starting from March 25.

£72MTotal donations to Reform UK
£100kProposed annual donation cap

Furthermore, authorities want to introduce a minimum residency period of at least 12 months, during which the cap would still apply to individuals returning to live in the UK. It remains unclear precisely when Mr. Delo and Mr. Harborne returned to the country. Under existing regulations, foreign donations are strictly illegal in the UK, yet British voters residing abroad are currently permitted to contribute unlimited sums to political parties.

"We are considering how we will strengthen the residency requirements, including ensuring that the length of time spent in the UK aligns with broader government policy."

Baroness Taylor of Stevenage
British currency pound notes finance uk

Stock photo for illustration only, not from the actual event

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Members of Parliament have backed the government's proposals by approving amendments to the Representation of the People Bill, which is currently undergoing detailed scrutiny in the House of Lords. Speaking during the debate, Communities Minister Baroness Taylor of Stevenage explained that the measures will be paired with a robust framework ensuring that contributors exceeding the £100,000 annual cap must demonstrate a genuine and ongoing connection to the UK.

The proposed legislative changes highlight ongoing efforts by UK lawmakers to close loopholes that previously allowed overseas-based British citizens to inject unlimited funds into domestic politics. This debate underscores broader sensitivities regarding campaign financing transparency and the influence of wealthy donors in British elections.

Business Secretary Jonathan Reynolds defended the policy framework, insisting that donation regulations are never formulated to target any single political party or specific set of issues. Meanwhile, Nigel Farage cautioned that retrospectively invalidating donations could collapse the existing political funding ecosystem and potentially force taxpayers to fund political parties instead.

Source: BBC Politics

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