The Conservative Party has called on HM Revenue and Customs to investigate whether Nigel Farage should have paid tax on a £5 million gift from cryptocurrency billionaire Christopher Harborne. Party chair Kevin Hollinrake wrote to HMRC questioning whether the payment was compensation for Farage's role as Reform UK leader and parliamentary candidate.
Farage has maintained that the gift was personal and unconditional, with documentation stating no expectation of return. He previously indicated the money was intended for personal security costs and as a reward for his Brexit campaign. However, The Guardian reported that sources claim Farage demanded £1 million per year to offset lost earnings if he stood for office.
In his letter, Hollinrake argued that if the payment was linked to Farage's political activities, it should be treated as income rather than a gift. He raised concerns about potential 'disguised remuneration' and called for HMRC to examine the tax treatment. Tax expert Dan Neidle has also questioned whether the sum should incur tax.
Farage also faces a parliamentary standards inquiry over undeclared funding from Harborne and fraudster George Cottrell. He told the Triggernometry podcast the gift was 'totally undeclarable' and claimed legal advice supported his position. The rules require declaration of gifts received within 12 months before becoming an MP, but only if they are political in nature.
A byelection is pending in Clacton, where Farage faces over 30 candidates, with major parties boycotting. If the standards committee sanctions him severely, a second byelection could be triggered. A Farage spokesman dismissed the Tory move as 'pure desperation'.
