Political Parties: Finance
The question
To ask the Secretary of State for Housing, Communities and Local Government, what assessment his Department has made of the impact of the revenue test on the ability of political parties to wind down (a) holding and (b) property companies which are no longer trading and transfer the assets to (i) another accounting unit and (ii) the main party.
Answered by Samantha Dixon
The Representation of the People Bill strengthens the framework for company and Limited Liability Partnership (LLP) political donations by introducing new eligibility criteria designed to ensure that donors have a genuine connection to the UK and are carrying on legitimate business activity.
The revenue test is one of three tests applied to assess whether a company has the capacity to make a political donation, alongside requirements relating to headquarters and ownership or control.
The Government’s approach is intended to close off routes for shell or dormant companies to be used to channel funds into UK politics, while ensuring that legitimate political fundraising can continue across the system.
We continue to engage with the Electoral Commission and other stakeholders including political parties on the implementation of this measure.
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