Political Parties: Finance
The question
To ask the Secretary of State for Housing, Communities and Local Government, with reference to the Rycroft Review: HM Government response, CP1636, 6 July 2026, how the profit test will relate to different types of corporate structure, including non-profit making bodies.
Answered by Ministry of Housing, Communities and Local Government
Companies (and limited liability partnerships) making donations will be required to demonstrate a genuine and substantive connection to the UK, preventing the use of shell companies to channel foreign or illicit money into UK politics.
We are introducing new, stringent eligibility criteria for companies and limited liability partnerships wishing to make political donations. Companies/LLPs will have had to make sufficient profit to cover their donation; be headquartered in the UK; and be majority owned or controlled by UK electors or UK citizens usually resident in the UK.
These changes are to ensure that political donations reflect genuine UK-based interests and help prevent foreign interference in our democracy.
The government is committed to understanding different views on the profit test and have continued to engage with Party representatives at the Parliamentary Parties Panel, as per our commitment. We are considering recent feedback and will share further detail on the profit test in due course.
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