Richard Tice has been referred to Parliament’s standards watchdog over an undeclared loan of nearly £80,000 from Nigel Farage’s aide, George Cottrell.
This development raises the possibility of another investigation into a Reform UK MP by the watchdog. It was already looking into Farage after the Guardian revealed he received an undeclared £5 million gift from crypto billionaire Christopher Harborne.
Tice, who is Reform’s deputy leader, received the loan in late 2024, months after being elected as the MP for Boston and Skegness. The transaction originally led bankers to raise concerns with authorities.
However, the parliamentary standards commissioner has now been formally asked by Lisa Smart, a Liberal Democrat frontbench MP, to investigate Tice for apparently failing to declare the loan in line with the rules governing MPs’ conduct.
The watchdog’s investigation into Farage is currently on hold because he is no longer an MP. He stepped down as the member for Clacton and is now fighting a by-election there, which will take place on 13 August.
It is alleged that Tice may have breached the MPs’ code of conduct by not declaring the loan. This is because the money appears to have been given at a preferential rate, and Cottrell’s tax residency in Montenegro made him an “impermissible donor.”
In a letter sent this week to the commissioner, Daniel Greenberg, Smart wrote: “Mr Cottrell is not just a private acquaintance of Mr Tice. He is an official adviser to Reform UK and Nigel Farage, as shown by his use of Reform UK business cards.
“It is highly unlikely that the loan would have been negotiated without their party political connection, given that this is the main basis of their relationship.”
The sum of £78,100 was paid in December 2024 by Cottrell into the account of Tisun Investments Ltd, a British company where Tice is a director. The company manages many of his financial investments.
The transaction from Cottrell, who was convicted of wire fraud in the US in 2017, was closely examined by bankers. This was because the money was being received by a sitting MP and came from a convicted criminal.
It was one of several transactions flagged to the National Crime Agency under its suspicious activity report scheme. This scheme requires banks to highlight large transactions, especially international ones, under anti-money laundering laws.
Around the same time as the loan from Cottrell, Tice is said to have sent about £92,000 to fund a property purchase in Dubai for a development called Peninsula Five.
In January last year, Tice gave £613,000 to Reform via Tisun Investments. This was a relatively unusual case of an MP donating to their own party. A month later, a sum of £655,000 was paid into Tisun’s account, which Tice described as an overpayment for the property purchase.
Instead of paying cash for the property, the Guardian understands he got a mortgage.
Around the same time, Tice sent £80,000 from Tisun to Cottrell, seemingly repaying the loan.
However, the £80,000 loan from Cottrell does not appear to have been disclosed in Tisun Investments’ corporate filings to Companies House or to the parliamentary authorities.
Tice is understood to have paid back £1,900 more than he borrowed from Cottrell. This loan appears to have been repaid on terms that were favourable to Tice, given commercial interest rates, the difficulty of securing loans as large as £80,000, and the likely early repayment fees for paying back a loan so quickly.In her letter urging Greenberg to investigate, Smart wrote: “Being open about these financial arrangements and investigating Mr. Tice are essential for public trust. We can’t allow senior politicians—including those from Reform UK—to ignore the rules that protect our democracy from corruption and sleaze.”
Tice responded: “The lovely summer heat might be getting to this Lib Dem MP. She’s referring to a corporate loan to one of my companies, which doesn’t need to be declared. I have several corporate loans in my businesses, and none of them require declaration.
They’re related to my property business, not politics. She seems to be mixing up corporate loans with MP donations. My shareholdings and directorships are fully declared as required.”
Frequently Asked Questions
Here is a list of FAQs based on the news story you described
General Background Questions
Q What is this whole story about
A A Liberal Democrat MP is asking for an official investigation into an 80000 loan that was given to the deputy leader of the Reform party The concern is about where the money came from and if the rules were followed
Q Who are the main people involved
A The main people are the Liberal Democrat MP who made the complaint the deputy leader of the Reform party and likely whoever gave the loan
Q Why does this matter
A It matters because political donations and loans are strictly regulated If the loan wasnt properly declared or if it came from a source that isnt allowed to give money to political parties it could be against the law
Specifics Rules
Q What exactly is being investigated
A The investigation would look at whether the 80000 loan was properly declared to the Electoral Commission It would also check if the person who gave the loan was a permissible source
Q What does permissible source mean
A It means the person or organisation giving the money must be legally allowed to donate to UK political parties Usually this means they must be on the UK electoral register or a UKregistered business Foreign donations are banned
Q Could this just be a simple mistake or is it a serious problem
A It could be either It might be a paperwork error But if the loan was hidden on purpose or if it came from an illegal source it would be a very serious breach of political finance rules
The Accusations Politics
Q Is this just political pointscoring
A Yes there is definitely a political element The Liberal Democrats are a rival party to Reform However the core questionwhether the rules were followedis a legitimate one regardless of the political motive
Q What is the Reform party saying in response
A Typically the party would deny any wrongdoing stating the loan was legal and properly declared They might also accuse the Liberal Democrats of trying to distract from other issues
