A tax expert has claimed that Reform UK could face a potential £3m tax liability due to Nigel Farage's undeclared £5m donation from crypto billionaire Christopher Harborne.

The controversy arises after reports that Farage discussed needing £1m annually to cover lost earnings if he stood for parliament in 2024, raising questions about the donation's purpose.

Dan Neidle, the tax expert, warned that if the donation was part of a reward for his political role, HMRC could investigate under disguised remuneration rules.

Reform UK denied the Guardian's report, calling it 'fake and wholly incorrect,' and emphasized that the party would not be liable unless the donation was tied to an official role.Farage, now an MP, is under investigation by the Commons standards watchdog for failing to declare the donation.

The case highlights broader concerns about political transparency and financial disclosures, with Farage facing scrutiny over undeclared gifts and financial support.

His recent decision to resign as an MP to trigger a by-election in his Essex constituency has paused the parliamentary probe, which will resume if he is re-elected.The HMRC has been contacted for comment, but no official stance has been released.