Rishi Sunak facing questions over his wife’s non-domicile status
Akshata Murty, who is worth hundreds of million pounds, is accused of avoiding tax
Last updated 29th May 2022
Chancellor Rishi Sunak is having to answer some difficult questions regarding his wife’s finances.
Mr Sunak is married to Akshata Murty, who is reputed to be worth hundreds of millions of pounds. India-born Ms Murty is a fashion designer and the daughter of billionaire N.R. Narayana Murthy.
Ms Murty confirmed that she holds the tax reducing non-domicile status, which means she is not legally obliged to pay tax in the UK on foreign income.
The Chancellor and Ms Murty married in 2009 and she has insisted she pays all taxes on UK income and said the non-domicile status is necessary due to her Indian citizenship.
Non-Dom is a choice
Tax experts have disputed Ms Murty’s claim that having a non-domicile status is necessary due to her Indian citizenship.
The co-founder of Tax Justice Network, Professor Richard Murphy, says non-domicile status is a “choice” which she can relinquish. Professor Murphy said; “Domicile has nothing to do with a person's nationality."
Professor Murphy continued; “Just because a person has Indian citizenship will never automatically grant them non-dom status in the UK."
Mr Sunak declared his wife’s tax status when he first became a minister in 2018, with the Treasury being notified.
Political fallout
Politicians from the main parties have commented on Ms Murty’s tax status.
The leader of the Labour Party, Sir Keir Starmer, has demanded answers and accused the Chancellor of “breath-taking hypocrisy” if Mr Sunak’s wife is reducing her tax bill at the same time as the treasury rises national insurance for millions.
Liberal Democrat Treasury spokeswoman Christine Jardine called for Mr Sunak to "come clean" about "which country his family pays tax in abroad and if it is a tax haven".
Prime Minister Boris Johnson refused to comment on the revelation, saying it is important to keep families out of politics "if you possibly can".