Nigel Farage bought a property worth £1.4 million with cash, shortly after receiving a personal gift of £5 million from cryptocurrency billionaire Christopher Harborne.
The revelation comes after parliament’s standards watchdog separately confirmed that the leader of Reform UK was facing a formal investigation into the gift from the Thailand-based businessman.
Asked about the purchase of the property, a Reform UK party spokesman said: “The relevant chronology is straightforward. The process of bidding for and purchasing the property began before the gift. Mr Farage had already passed the funds test and the relevant checks before he received the gift. Therefore, the purchase was proceeding regardless of it.”
However, the Labour Party called on the Reform leader to fully disclose what the £5 million, which was first revealed by The Guardian, was used for.
Farage has said the gift was intended to cover his personal security costs and therefore did not need to be declared.
However, other parties argue that the money from the Thailand-based businessman falls within rules requiring MPs to declare any potentially significant gifts or donations received in the 12 months before entering parliament.
If the investigation finds that Farage has committed a particularly serious breach of parliamentary statement rules, he could be suspended from the House of Commons.
A suspension of 10 days or more could trigger a petition for dismissal, potentially forcing him to fight for his place in Clacton again.