Overseas voters who move to the UK could be prevented from giving more than £100,000 in political donations for a year after their arrival under new proposals announced by ministers.

The government said the change is aimed at stopping foreign money from influencing UK elections and would apply alongside tougher checks on company donations. It builds on an earlier government plan to apply a £100,000 annual donations cap to British citizens living overseas, backdated to 25 March.

Under the new approach, overseas donors would be required to be based in the UK for a minimum amount of time before their donations could exceed the £100,000 limit. The proposals are expected to affect major donors to Reform UK, including billionaire Christopher Harborne and crypto investor Ben Delo, both of whom have donated millions in recent months and have reportedly plans to return to the UK.

The government also set out other related changes, including assessing political donations from companies against post-tax profits over the previous five years rather than revenue alone. Candidates would also be required to prove that funding they received before becoming candidates came from legitimate sources, with declarations needed for donations above £2,230 before officially becoming a candidate.

Ministers said the proposals would be introduced as amendments to the Representation of the People Bill, currently expected to return to the House of Commons for further consideration on 14 July.