The UK Government is set to introduce new restrictions on political donations from British citizens returning from overseas, closing a loophole that previously allowed them to evade existing caps. The planned rules will impose a £100,000 annual limit on donations from individuals for at least one year after they return to the country, aiming to prevent circumvention of the £100,000 cap already in place for overseas electors.

This measure could significantly impact Reform UK, which has received substantial funding from donors who were previously based abroad but have since relocated to the UK. Among those potentially affected are Christopher Harborne, a billionaire businessman based in Thailand, and Ben Delo, a cryptocurrency entrepreneur formerly residing in Hong Kong. Harborne has donated more than £22 million to Reform and its predecessor, the Brexit Party, since 2015, including a £3 million gift in early 2026. Delo contributed £4 million in two separate donations earlier this year. Both have indicated or are reported to be registering to vote in the UK and may be subject to the new year-long donation limit.

The forthcoming regulations stem from recommendations made by former civil servant Philip Rycroft, who reviewed safeguards against foreign financial influence in British politics. The review highlighted difficulties in tracing overseas donations and urged measures to prevent wealthy individuals from exploiting residency status changes to make uncapped donations. The rules will also apply retrospectively; anyone who was an overseas elector as of March 25, 2026, but has since moved back to the UK, will be subject to the minimum residency period before donating above the cap.

In addition to tightening individual donation limits, the Government plans to implement stricter criteria for corporate donations. Companies will have their permissible donation amounts assessed based on post-tax profits over the previous five years rather than on revenue figures alone.

These reforms coincide with renewed scrutiny of Reform UK leader Nigel Farage, who faces allegations concerning a £5 million gift from Harborne. The donation was reportedly made to cover personal security expenses, but critics argue it was not properly declared in parliamentary registers, potentially violating House of Commons rules. Both Labour and Conservative parties have called for an investigation, with the Conservative Party referring the matter to the Parliamentary Standards Commissioner. Farage has declined to comment on the issue.

Labour officials assert the new measures will protect British democracy by preventing undue foreign influence and increasing transparency around political funding. Samantha Dixon, the minister for democracy, emphasized that the reforms aim to close existing loopholes and strengthen oversight of campaign financing. Reform UK representatives have previously described the cap as an attempt by Labour to restrict legal funding for a political rival.

The proposals are expected to be introduced as an amendment to the Representation of the People Bill when it returns to the House of Commons for its report stage next week. The Government has indicated that these changes will form part of a broader effort to safeguard the integrity of UK elections in the face of evolving financial challenges.