Chancellor’s wife to start paying UK taxes after non-domicile row

CHANCELLOR RISHI Sunak’s wife, Akshata Murty, last night said she will now pay UK taxes on all her worldwide income after disclosure of her non-domiciled status sparked a furious political row.

In a statement, Ms Murty, who remains an Indian citizen, said she was acting because she did not want her financial arrangements to be a “distraction” for her husband.

Her announcement came just hours after Mr Sunak faced attacks after he disclosed he had held a US green card – making him a “lawful permanent resident” of the United States – while he was Chancellor.

In her statement, Ms Murty said her non-dom status – which meant that she did not pay UK taxes on income derived from outside the UK – was “entirely legal”.

However, she said it had become clear that there were many who believed it was not compatible with her husband’s position in charge of the nation’s finances.

“I understand and appreciate the British sense of fairness and I do not wish my tax status to be a distraction for my husband or to affect my family,” she said.

“For this reason, I will no longer be claiming the remittance basis for tax.

“This means I will now pay UK tax on an arising basis on all my worldwide income, including dividends and capital gains, wherever in the world that income arises.

“I do this because I want to, not because the rules require me to.”

The news came after Mr Sunak admitted holding a US green card while Chancellor, as Boris Johnson said he was unaware his Cabinet colleague’s wife holds the tax-reducing non-domiciled status.

Mr Sunak released a statement admitting holding a permanent resident card to the States until around October, having become Chancellor in February 2020. The Richmond MP has been coming under scrutiny after it emerged his wife Mrs Murty, the fashion designer daughter of an Indian billionaire, holds the non-dom status exempting her from paying tax in the UK on foreign income.

Labour leader Sir Keir Starmer yesterday said that Mr Sunak must “come clean” about his family’s tax affairs, saying that members of the public are entitled to know about the tax arrangements of the Sunak family.