Conservatives urge HMRC to probe tax status of Farage’s £5m Harborne gift
Kevin Hollinrake writes to tax authorities seeking clarification on the £5m sum received from Christopher Harborne, as Nigel Farage faces a separate parliamentary standards inquiry.
The Conservative Party has formally requested that HM Revenue and Customs (HMRC) investigate whether Nigel Farage is liable for tax on a £5m payment received from crypto billionaire Christopher Harborne. Conservative Party chair Kevin Hollinrake wrote to the tax authorities questioning the nature of the funds, suggesting they may constitute taxable income linked to Farage’s potential return to politics rather than a personal gift.
Hollinrake’s correspondence highlights concerns raised by recent reporting that Farage informed senior Reform UK figures he would require compensation of £1m per year to offset lost earnings if he were to stand for parliament. The letter argues that if the payment was an inducement or compensation connected to Farage resuming the leadership of Reform UK and seeking election, it should be characterised as income.
The party chair urged HMRC to examine whether the payment falls within the ‘disguised remuneration’ regime or constitutes taxable earnings arising from a political position. Hollinrake noted that the tax treatment for such a payment would be materially different from that applicable to a genuine personal gift or a standard political donation, particularly given that the sum was not declared as a political donation.
Farage maintains that the payment was unconditional and personal, supported by a document stating there was no expectation of return. He has previously stated the funds were intended for personal security costs and as a reward for his campaigning on Brexit. On the Triggernometry podcast, Farage described the £5m as “totally undeclarable in every single way,” citing advice from a top international lawyer that the gift did not need to be declared.
The request for an HMRC investigation coincides with a separate parliamentary standards inquiry into the Harborne gift and other undeclared funding from fraudster George Cottrell. While major parties have boycotted the current byelection in Clacton, they have indicated they would stand against Farage in a second contest if a standards sanction triggers a recall petition.
