UK proposes one-year rule for newcomers donating over political cap

On 6 July, anyone who has recently moved to the UK will have to be permanently based in the country for a year before donating above the £100,000 cap. The change tightened political finance rules announced on 25 March, when British citizens living abroad were capped at £100,000 a year on political donations and regulated loans. Those rules apply across all donations and loans made by an overseas voter in a calendar year, not just to one recipient, and will take retrospective effect from 25 March 2026 once legislation is passed. Parties and other regulated entities will then have 30 days to return any unlawful donations received in the interim.

The Rycroft Review, commissioned in December 2025 after concern about foreign financial interference in UK politics, made 17 recommendations when it was published on 25 March. The government accepted the overseas-donor cap and a ban on cryptocurrency donations immediately, saying crypto would be blocked until regulation is strong enough to prevent untraceable money being funnelled into UK politics.

Donations from companies will be assessed against post-tax profits over the previous five years rather than revenue alone, and candidates will have to prove campaign funding came from legitimate sources. Overseas electors remain permissible donors in Great Britain, and foreign political donations are banned in the UK, although foreign money can still enter politics through permitted channels.

Nathan Gill, the former Reform UK leader in Wales, was jailed for 10 and a half years after admitting bribery linked to pro-Russia statements. Reform has also drawn large sums from Christopher Harborne, the Thailand-based businessman who gave the party £9 million in 2025.