UK government sets £100,000 donation cap for new overseas residents

The UK government has introduced new limits on political donations from individuals who have recently arrived from overseas. The rules set a £100,000 cap for the first year after arrival and extend an existing annual overseas donation limit that began March 25.

The changes also require companies seeking to donate to demonstrate five years of post-tax profits rather than relying on revenue figures alone. Candidates must now verify the source of any donations above £2,230 received before they formally enter an election race.

Measures target company and individual funding The rules follow a review of political funding conducted by former top civil servant Philip Rycroft. They will be incorporated into the Representation of the People Bill, which faces its final Commons stages on July 14 before moving to the House of Lords.

Government statement on the changes

“British democracy is not for sale.”

These tough new rules will shut down dodgy funding, stop foreign money influencing our elections and keep our democracy strong." — Communities Secretary Steve Reed (The Independent) The measures apply to any donor who has lived in the UK for less than one year and to companies whose donation eligibility will be assessed on sustained profitability.