The government has announced new reforms aimed at cracking down on foreign money in UK elections.

The government will introduce a new timebound cap on large political donations from people who have recently moved to the UK, creating a minimum amount of time someone must permanently be based in the country before they can donate over the cap to a political party or candidate. Individuals returning to the UK will now be subject to the cap for at least a full calendar year.

There will also be stronger tests on company donations, new and tough transparency requirements for candidates, and the closing of loopholes that could be exploited by those seeking to interfere in UK elections.

Company political donations will be assessed against post-tax profits over the previous five years rather than revenue alone. This means only legitimate UK-linked businesses will be able to donate in a way that is transparent, accountable and reflective of their real financial position.

Election candidates will be required to prove that any campaign funding received before they become a candidate has come from legitimate sources. They will also be required to declare donations above £2,230 received prior to officially becoming a candidate.

The measures are part of the government’s response to the independent Rycroft Review and are aimed at strengthening safeguards against foreign financial influence and reinforcing the UK’s position as a world leader in defending democratic integrity.

Secretary of State Steve Reed said: "British democracy is not for sale. These tough new rules will shut down dodgy funding, stop foreign money influencing our elections and keep our democracy strong.

"By holding overseas donors to tougher standards and requiring candidates to prove where their funding comes from, we are taking world-leading action to protect the integrity of our elections and tackle the threats we face from abroad."

Minister for Democracy, Samantha Dixon MP, said: "The overwhelming majority of people who take part in our democratic process do so honestly and transparently, but our rules must keep pace with new and emerging threats.

"These reforms will close loopholes that can be exploited by those seeking to influence UK politics through foreign money, while strengthening transparency around campaign funding and company donations.

"This means political decisions are made only in the interests of voters in the United Kingdom."