UK caps first-year overseas political donations at £100,000

The British government has announced a significant tightening of political donation rules, closing a loophole that allowed individuals moving to the UK from abroad to immediately donate unlimited sums. The changes, confirmed on Monday, will impose a 100,000 annual cap on such donors for their first year of residency, a move that directly impacts two of Reform UK's largest financial backers.

The new regulations will require individuals who relocate to the UK to be permanently based in the country for a full year before they can exceed the donation threshold. This measure is designed to prevent donors from circumventing an existing 100,000 annual cap on donations from British citizens living overseas, which took effect in March. The change could affect cryptocurrency tycoons Christopher Harborne and Ben Delo, who have reportedly returned to live in Britain after donating millions to Nigel Farage's party. Harborne made a 3 million pound donation to Reform UK between January and March this year, while Delo donated 4 million pounds in two lump sums during the same period.

Communities Secretary Steve Reed stated the reforms would "shut down dodgy funding, stop foreign money...