British politics has been rocked by two gifts totalling \u00a372m given to the party by crypto billionaires Christopher Harborne and Ben Delo, <\/a>who last week handed over \u00a336m each.<\/p>\n The donations have prompted major questions over what the donors want in return for their cash, but Reform insists the pledges are entirely legal and the men are patriots who want nothing but to support the party to get ready to govern. <\/p>\n Now, a new analysis of HMRC data by the Labour Party shows that capital gains tax breaks promised by Reform to crypto investors would be worth more than \u00a3100m a year, based on investments in 2025 alone. <\/p>\n And that could go much higher if investing in crypto is incentivised \u2013 presenting a huge incentive for investors to back the party.<\/p>\n Two leading tax experts told The Independent there is \u201cno justification\u201d for tax relief on the sector and warned it could harm the economy if implemented.<\/p>\n Economist Paul Johnson, a former director of the highly respected Institute of Fiscal Studies (IFS), said: \u201cThere is quite clearly no feasible economic rationale for treating crypto more leniently than other economically productive assets.\u201d<\/p>\n At a time of a cost of living crisis when Reform also wants to slash welfare spending, he added: \u201cCapital gains tax payments are very highly concentrated among a small group of people with very large gains.\u201d<\/p>\n Tax lawyer Dan Neidle said: \u201cIt\u2019s not obvious whether these plans would generate any growth. If it incentivises people to shift from productive assets into cryptocurrency, it could [delay] growth.\u201d<\/p>\n Reform\u2019s policy includes cutting capital gains tax (CGT) on crypto assets from the current level of 24 per cent for higher-rate taxpayers and 18 per cent for basic-rate taxpayers, to a flat 10 per cent.<\/p>\n An analysis of this policy shows that most of Reform\u2019s giveaways would go to a very small high-earning group, with official HMRC statistics published last month showing that 240 people in 2024\/25 reported more than \u00a31m in capital gains from crypto assets.<\/p>\n<\/p>\n This tiny group of crypto millionaires made \u00a3717m of the total \u00a31.38bn crypto asset gains \u2013 reported by 17,600 people \u2013 in 2024\/25, HMRC figures show.<\/p>\n Under Reform\u2019s plans to slash CGT, the high-earning group of crypto investors would save around \u00a3100m a year. That means a tax cut worth half a billion pounds going to 240 millionaires over the course of a five-year parliamentary term.<\/p>\n The Labour Party has vowed to take action to limit crypto donations, with housing secretary Angela Rayner warning her party could change the law<\/a> retrospectively to force Reform to hand the \u00a372m donations back.<\/p>\n A spokesperson for the party said of the analysis: \u201cFarage and Reform are drowning in sleaze and scandal. They can\u2019t buy their way out of the questions that the public need answers to. It\u2019s clear Reform is on the side of a handful of crypto-billionaires, while Labour is delivering the change people across the country want to see.\u201d<\/p>\n A recent investigation by The Independent revealed that a staggering 60 per cent of the Reform\u2019s donations<\/a> since the general election came from people linked to crypto \u2013 even before the latest two mega donations from Mr Harborne and Mr Delo<\/p>\n The Reform UK leader has also personally invested in the Tether stablecoin, the cryptocurrency linked to Mr Harborne, who had previously given the party \u00a315m.<\/p>\n Mr Harborne also gave Mr Farage a separate \u00a35m, which is currently being investigated by the Standards Commissioner<\/a> because the Reform leader failed to declare it.<\/p>\n Mr Farage has insisted the cash was a personal gift for his security and that he was advised he did not need to declare it as it was before he was an MP.<\/p>\n![\"Farage](\"https:\/\/www.newsbeep.com\/uk\/wp-content\/uploads\/2026\/09\/2026-09-05T163746Z_1393524035_RC24DNAIO5LO_RTRMADP_3_BRITAIN-POLITICS-REFORM-CONFERENCE.JPG\")
Farage is offering tax breaks for crypto investors (Reuters)<\/p>\n![\"Ben](\"https:\/\/www.newsbeep.com\/uk\/wp-content\/uploads\/2026\/09\/Ben-Dalo-and-Christopher-Harborne.jpeg\")
Ben Delo and Christopher Harborne say they want nothing in return for their huge donations to Reform (Anne Schwarz Photography\/CC BY-SA 4.0)<\/p>\n