Boris Johnson makes it simpler for tax exiles to fund the UK elections

  • Boris Johnson’s administration is proposing a new law to make it easier for non-resident Britons to fund elections in the UK.
  • The amendment is being sold to make it easier for British “emigrants” to vote in the UK.
  • However, activists say it is a “Trojan horse” to raise more foreign money to fund the UK elections.
  • Check out Insider’s business page for more stories.

The UK government is introducing a new bill that will make it much easier to fund UK elections through tax exiles and non-resident Brits, activists warned.

The electoral law, released on Monday, would allow UK citizens who have lived abroad for more than 15 years to enroll on the electoral roll, giving them a lifelong right to both vote and fund UK elections.

Under the new rules, foreign voters would not have previously had to appear on a UK electoral roll to vote or to donate to political parties.

As of 2009, there has been an inactive law in the UK law books prohibiting donations from non-resident UK citizens.

However, the law never went into effect because the tax status of non-resident individuals is confidential and therefore cannot be verified by regulators or political parties, the Times reported in 2019.

UK citizens living abroad can already donate through UK-registered companies that are ultimately owned offshore – and anyone can donate without checking through shady non-incorporated associations. However, foreign voters currently have to register anew every year.

The ruling Conservative Party was using existing methods to accept more than £ 1 million from UK citizens living in tax havens ahead of the 2017 general election, the Times reported. The new law will remove these barriers.

Cat Smith MP, shadow minister for democracy for the opposition Labor Party, told Insider, “Conservatives are using the pandemic cover to sneak through unprecedented changes to our foreign political donation laws.

“This is yet another example of Conservatives bending the rules for their own benefit, making it legal for rich Conservative donors living abroad to fund the Conservative Party.

“This loophole will allow foreign political donations to flood our system and undermine the integrity of our democracy. It’s about changing the rules to help the Conservative Party, with foreign donors who can legally donate to fund their campaigns from their offshore tax havens or luxury. ”Second homes.

“Foreign donors are not allowed to financially influence our democratic processes – this right is reserved for the citizens of this country.”

Activists warn that the law will be used as a “Trojan horse” to channel financial donations from non-resident sources and that it will open British politics to “outside influence”.

Tom Brake, director of Unlock Democracy and former Liberal Democrat MP, told Insider: “The electoral law must not be used as a Trojan horse to allow foreign money to skew election results in the UK. Donations will be asked about tax-free representation questions.”

Dr. Jess Garland, director of policy and research for the Electoral Reform Society, told Insider, “Extending the right to vote in our elections is a positive move, but the government must carefully weigh the risks of lifting restrictions on foreign voters – the consequence of which is an increase could mean for foreign political donations.

“There remain a number of loopholes in our election funding rules that leave the door open for foreign interference in our policies. This electoral law does not address these concerns and may open up new avenues for foreign financial donations.

The government defended the law change as an attempt to expand the franchise.

Chloe Smith MP, Secretary of State for Constitution and Devolution, told Insider, “Our commitment to abolish the arbitrary 15-year foreign vote limit is a promise to citizens across the political spectrum. This is best illustrated by the 99 year old veteran, Harry Shindler, who is also the oldest serving member of the Labor Party.

“Britons living abroad have an ongoing interest in UK politics and in our increasingly digital world, people abroad can be more connected to their home country. It is only right that they should be in our democracy.”