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Rishi Sunak news - live: Chancellor defends wife over non-dom tax status as Labour demands answers

Murty is estimated to be worth hundreds of millions of pounds

Stuti Mishra
Friday 08 April 2022 20:01 EDT
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‘Keep families out of it’: Johnson dodges question on Sunak wife tax affairs

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Chancellor Rishi Sunak has defended his wife, billionaire Akshata Murty, over her tax-reducing non-domiciled status after Labour demanded answers whether he himself benefitted from her status.

Mr Sunak said his wife had done nothing wrong in choosing a financial arrangement that means she is not legally obliged to pay tax in Britain on foreign income.

He has blamed Labour for the “awful” smears against his family, saying: “She hasn’t broken any rules”.

This comes after the party demanded the Chancellor to answer 12 central questions about whether he personally benefited from Ms Murty’s tax arrangement.

Ms Murty, daughter of the Indian businessman Narayana Murthy, is estimated to be worth hundreds of millions of pounds.

Meanwhile, The Telegraph reported that unnamed allies of the Chancellor claimed the Prime Minister’s office was behind the leaks – an allegation No 10 and No 11 strongly denied.

A No 10 spokeswoman told the PA news agency: “It is categorically untrue that No 10 is behind the briefings.”

“The Prime Minister and Chancellor are united.”

Labour calls for Akshata Murty to ‘pay back all tax saved’ through non-dom status

Responding to Akshata Murty's statement on her status as a non-domicile, a Labour spokesperson said there were “far too many troubling questions remaining”.

They added: “With startling new reports today of the Chancellor being listed as a beneficiary of tax haven trusts, nothing less than full transparency can be expected. Any further obfuscation cannot be tolerated, and it would be beyond shameful of the Chancellor if he does attempt to do so.

The spokesperson also“asked why Ms Murty’s spokesperson and Rishi Sunak appeared to suggest that her Indian citizenship prevented her from paying tax.

“Was the Chancellor simply ignorant of how the rules work or did he lie?” the spokesperson said.

“Given she now accepts the importance of fairness and that it was wrong for her to claim to use her non-dom status to not pay full taxes here will she agree to paying back all the tax she saved through the arrangement?”

Andy Gregory8 April 2022 21:06

‘How on earth can we trust Rishi Sunak our taxes?’ Rayner says

Deputy Labour leader Angela Rayner has accused Rishi Sunak of “swerving questions and switching tax codes even faster than bills are going up for the rest of us.”

It comes after it was revealed his wife, Akshata Murty, pays £30,000 a year to maintain her non-dom status - which means she is not required by law to pay UK taxes on her overseas income.

It also emerged on Friday that Mr Sunak had held a US green card while living in Downing Street. Green card holders must pay tax in America and declare their intention to make the US their permanent home.

In response, Ms Rayner said: “When the Chancellor can’t even honestly say which country he lives in how on earth can we trust him with our taxes?”

Emily Atkinson8 April 2022 21:40

Politics explained: Can Rishi Sunak stay as chancellor after non-dom tax affair?

A mere fortnight or so ago, before the chancellor delivered his ill-starred spring statement, the Westminster gossip centred on Rishi Sunak’s evaporating hopes of becoming prime minister, writes Sean O’Grady. With Partygate half-forgotten, plaudits from President Zelensky, and the cost of living crisis being blamed on No 11, Boris Johnson was enjoying an unlikely recovery.

Yet the game wasn’t over for Sunak. Hope springs eternal. Then he botched his mini-Budget, which was liked by no one, and added some PR blunders into the mix. Recuperating in the California sunshine at his second home, he must have wondered where it had all gone wrong. Then came The Independent’s scoop about his spectacularly rich wife’s non-dom status.

Can Rishi Sunak stay as chancellor after non-dom tax affair?

Once a serious leadership prospect, Sunak’s best interests now lie in keeping Johnson in No 10, as Sean O'Grady explains

Emily Atkinson8 April 2022 22:10

White House refuses to be drawn into Sunak row after chancellor admits US green card

The White House today said it did not have any information to offer with regard to the green card held by Rishi Sunak.

It follows the chancellor’s admission on Friday that he had held a US green card while living in Downing Street.

Its holders must pay tax in America and declare their intention to make the US their permanent home.

An MP since 2015, Mr Sunak only surrendered his green card in October last year - despite the fact that those serving in a foreign government or standing for an election in a foreign government are not compatible with lawful permanent residence status, according to US rules.

Citing the US citizenship and immigration services (CIS) manual, a journalist for The Independent asked press secretary Jen Psaki why the White House had not flagged the matter sooner.

In reply, Ms Psaki pointed our reporter in the direction of the US state and homeland security departments, adding she had “no more comment from here.”

When asked if president Joe Biden saw it as a problem that someone serving at a high level in a foreign government had maintained permanent resident status in the US, she again declined to comment.

“I’ll see if there’s more we can provide you,” she said.

Emily Atkinson8 April 2022 22:40

Cressida Dick hits out at ‘politicisation of policing’ in parting shot as she leaves Metropolitan Police

Dame Cressida Dick has hit out at the “politicisation of policing” in a parting shot as she leaves the Metropolitan Police.

In an open letter to Londoners, the departing commissioner took what will be seen as a swipe at mayor Sadiq Khan amid a continuing row over her resignation.

“The current politicisation of policing is a threat not just to policing but to trust in the whole criminal justice system,” she wrote.

“Operational independence from local and central government is crucial for an effective democracy and is a model respected around the world. We must all treasure and protect it.”

Our home affairs editor Lizzie Dearden has the story:

Cressida Dick hits out at ‘politicisation of policing’ as she leaves Met Police

Women’s campaginers criticise commissioner’s ‘letter to London’ after it hails achievements and fails to name Sarah Everard

Emily Atkinson8 April 2022 23:10

White House refuses to be drawn into Rishi Sunak row after chancellor admits US green card

The White House has said it does not have any information to offer in regard to the US green card held by Rishi Sunak for nearly two years after becoming chancellor which legally declared him a “permanent US resident”.

It follows the chancellor’s admission on Friday that he had held a US green card while living in Downing Street. Its holders must pay tax in America and declare their intention to make the US their permanent home.

It follows an exclusive report from The Independent which revealed that the chancellor’s wife, Akhshata Murty, has non-dom tax status despite residing in Whitehall – which means she is not required by law to pay UK taxes on her overseas income.

Emily Atkinson reports:

White House refuses to be drawn into Sunak row after chancellor admits US green card

Green card holders are considered ‘US tax residents for US income tax purposes’

Emily Atkinson9 April 2022 00:00

We’re pausing out live updates for the evening, come back tomorrow for more live coverage.

Katy Clifton9 April 2022 01:01

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