Rishi Sunak’s wife’s tax inquiry begins

According to a source, a Whitehall inquiry is looking into how the tax affairs of Chancellor Rishi Sunak’s wife were leaked to the media.

Following a row over her non-domicile status, Akshata Murty has stated that she will pay UK taxes on her overseas income.

She owns £700 million worth of shares in her father’s Indian IT behemoth Infosys, from which she received £11.6 million in dividend income last year. Labour has accused Mr. Sunak of hypocrisy in light of the rising cost of living.

Ms. Murty is not required to pay UK taxes on her overseas income as a non-domiciled (non-dom) UK resident.

Ms. Murty changed her tax arrangements on Friday, telling the BBC that she did not want to be a “distraction” for her husband.

According to a source, Ms. Murty’s status would have saved her £2.1 million a year in UK tax. No 10 has denied newspaper reports that its employees leaked damaging information about Mr Sunak to the press.

Elsewhere, Health Secretary Sajid Javid admitted to the Sunday Times that he claimed non-domicile status for six years between 2000 and 2006 while working as a banker.

A non-dom is someone who resides in the United Kingdom but claims permanent residence in another country.

The chancellor has endured a trying week, prompting him to ask senior civil servants for a full investigation into who disclosed his wife’s tax status.

His allies assert that only a small number of people had access to the personal information Mr Sunak disclosed to Whitehall officials upon becoming a minister in 2018.

According to some Conservative MPs, he was naive in believing the details would remain private and should have anticipated that the tax arrangements would be criticised as inappropriate, despite their legality.

Mr. Sunak’s team has refuted claims of a schism with Downing Street, stating that the prime minister has been “extremely supportive.”

However, Mr. Sunak’s brand – which he has vigorously promoted since taking office – has been tarnished, with some Tories casting doubt on his judgement.

Friends have also confirmed to the BBC that the chancellor’s wife and daughters are relocating from Downing Street to the family home in west London, where he will spend weekends with them.

This is a decision that was reportedly made well in advance of the row making headlines.

According to opposition MPs, Mr. Sunak’s family benefits at a time when he is raising taxes on millions of others.

Labour MP Louise Haigh said: “I believe many people will question whether it was ethical and proper for the Chancellor of the Exchequer to benefit from a tax scheme that allowed his household to pay significantly less, potentially tens of millions of pounds, while piling on 15 separate tax increases to the British public.”

Mr. Sunak has accused political opponents of “smear campaigns” against his wife.

Also Read

Rishi Sunak admits holding a US green card

In light of his wife's announcement that she will be paying UK...