Skip to content
Search

Latest Stories

Sunak's wife to pay UK taxes on worldwide income

Sunak's wife to pay UK taxes on worldwide income

AKSHATA MURTY, wife of Britain's chancellor Rishi Sunak, announced on Friday (8) she will start paying UK tax on "all worldwide income," amid controversy over her non-domiciled status.

Sunak has accused critics of mounting a "smear" campaign against his wealthy Indian wife, whose substantial foreign earnings have been shielded from UK taxes.

The opposition Labour has accused Sunak of "breathtaking hypocrisy" after he raised taxes on ordinary Britons in the middle of a cost-of-living crisis.

In a statement, Murty, daughter of Indian billionaire NR Narayana Murthy, said she did not want her non-domiciled status to be a "distraction" for her husband.

"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".

Murty stressed that she was making the change "because I want to, not because the rules require me to", adding that the new arrangements will begin "immediately".

The Guardian estimated that Murty has received £54.5 million in dividends from the family company Infosys since 2015. Her status allowed her to avoid paying £20m of tax to the British exchequer, the paper said.

Earlier her husband, told Friday's edition of The Sun newspaper that "to smear my wife to get at me is awful".

Sunak, once a leading contender to succeed prime minister Boris Johnson, has seen his popularity plummet in recent weeks as consumer prices surge across the board.

'She loves her country'

The Independent revealed that Sunak was listed among the beneficiaries of trusts in the British Virgin Islands and the Cayman Islands, two tax havens.

This has fuelled criticism from the opposition that the Conservatives are taking advantage of the system for their own convenience, ignoring the rules imposed on others.

Speaking before his wife's announcement, Sunak told The Sun, "it would not be reasonable or fair to ask her to sever ties with her country because she happens to be married to me".

"She loves her country. Like I love mine," he said, adding that "every single penny she earns in the UK she pays UK taxes on".

A person's domicile is usually the country which their father considered his permanent home when the person was born, although this can change if the person plans to permanently live in Britain.

Murty is legally entitled to claim the status, but she had ultimately declaring that the UK - the country in which her husband holds the second-most important political office - is not her permanent home.

And contradicting Sunak, tax lawyers had noted that Murty could still pay taxes in Britain on her global income without renouncing her Indian citizenship.

Allies of the finance minister told the Daily Telegraph that they believed Johnson's office was behind damaging recent leaks.

They said the prime minister believed Sunak had not backed him strongly enough during an ongoing scandal into Downing Street lockdown parties.

Johnson denied knowledge of any briefing operation against Sunak, and told reporters that his chancellor was doing an "absolutely outstanding job".

"And I don't think people's families should be dragged into things," he said.

A recent YouGov poll showed Sunak's rating falling by 24 percentage points over the past two weeks, following a budget statement that was criticised for ignoring the plight of struggling Britons.

(AFP)

More For You

Nottingham-attacks

Calocane killed university students Grace O'Malley-Kumar and Barnaby Webber, along with school caretaker Ian Coates, on 13 June 2023. (Photo: Getty Images)

Report finds Valdo Calocane rejected medication before Nottingham killings

AN INDEPENDENT investigation into the mental health care of Valdo Calocane, who killed three people in Nottingham in June 2023, has found that he was not forced to take injectable antipsychotic medication because he disliked needles.

The full report was released by NHS England following pressure from the victims' families.

Keep ReadingShow less
aga-khan-reuters-lead

A long-time friend of the late Queen Elizabeth, Aga Khan IV was appointed KBE in 2004. (Photo: Reuters)

Aga Khan IV: Bridging faith, philanthropy, and development

HIS HIGHNESS Prince Karim al-Husseini, known as the Aga Khan, led the Ismaili Muslim community for nearly seven decades while building one of the world’s largest private development networks.

As the 49th hereditary imam of the Ismaili sect of Shia Islam, he combined religious leadership with extensive philanthropic efforts across Asia, Africa, Europe, and North America.

Keep ReadingShow less
Tulsi Gabbard

Gabbard, 43, has faced bipartisan concerns over her suitability for the role overseeing US intelligence agencies. (Photo: Getty Images)

Tulsi Gabbard moves closer to US intelligence chief role

TULSI GABBARD, former Democratic congresswoman and president Donald Trump's nominee for Director of National Intelligence (DNI), has been approved by a key Senate committee in a private vote, moving her nomination forward to a full Senate vote.

The Senate Select Committee on Intelligence, led by Republicans, voted 9-8 along party lines to advance Gabbard’s nomination. A full Senate vote on her confirmation is expected as early as next week, according to the Washington Post.

Keep ReadingShow less
Aga-Khan-Getty

Over the years, the Aga Khan became both a prominent philanthropist and a business magnate, balancing religious leadership with global development work. (Photo: Getty Images)

Aga Khan, Ismaili Muslim leader and philanthropist, dies at 88

HIS HIGHNESS Prince Karim Al-Hussaini, Aga Khan IV, the spiritual leader of the Ismaili Muslim community and head of a vast philanthropic network, died on Tuesday at the age of 88.

His Aga Khan Development Network and the Ismaili religious community announced that His Highness Prince Karim Al-Hussaini, the 49th hereditary imam of the Shia Ismaili Muslims, passed away in Portugal, surrounded by his family.

Keep ReadingShow less
Lucy Letby

Letby, 35, is serving 15 whole-life sentences for the deaths of babies at neo-natal units in northwest England between 2015 and 2016.

Review launched into Lucy Letby case after experts challenge evidence

A REVIEW has been launched into the case of Lucy Letby, a nurse sentenced to life imprisonment for killing seven newborn babies, as medical experts argue there was no evidence to support her conviction.

Letby, 35, is serving 15 whole-life sentences for the deaths of babies at neo-natal units in northwest England between 2015 and 2016. She was convicted of murdering seven newborns and attempting to kill seven others at the Countess of Chester Hospital, making her the most prolific child serial killer in modern UK history.

Keep ReadingShow less