London Daily

Focus on the big picture.
Friday, Sep 25, 2026

Akshata Murty: Chancellor's wife could save £280m in UK tax

Akshata Murty: Chancellor's wife could save £280m in UK tax

Chancellor Rishi Sunak's wife could save herself £280m in UK tax thanks to a loophole created by a treaty between the UK and India dating from the 1950s.

Akshata Murty has "non-dom" status, meaning she does not have to pay UK tax on income earned abroad.

Non-dom status "wears off" after 15 years and the person is subject to all tax requirements of a UK citizen - including on their estate.

But there is an exception for Indian citizens around inheritance tax.

A technicality means that even if Ms Murty agrees to pay UK taxes on her worldwide income, but retains her non-dom status, she can still benefit from a provision in a 1956 treaty that was designed to stop Indian citizens being double-taxed on their estates in the UK and India.

Ms Murty earns money from shares in an Indian software giant founded by her billionaire father.

India abolished inheritance tax in the 1980s, but this tax exemption was never revoked.

So Ms Murty could have her estate taxed there at zero upon her death, rather than in the UK at 40% - saving £280m on her £700m stake in the company founded by her father.

Like her current reduced tax rate on her worldwide income - this would be perfectly legal, and HMT Treasury has said that the chancellor provided all relevant information on his interests when he became a minister.

Nevertheless, the very significant sums Ms Murty could have saved up to now - and may save in the future - pose some awkward questions for Rishi Sunak.

As Chancellor, Rishi Sunak has ultimate oversight of all fiscal matters in the UK. That includes regular reviews of the non-dom rules.

Reviewing rules which directly affect the financial arrangements of his own family members seems uncomfortable at best, a direct conflict of interest at worst. Others, including the chancellor's political opponents, have suggested that Mr Sunak should move his power over non-dom policy to another department.

On reported dividends of £11.5m from £700m worth of shares, Ms Murty would have paid tax at 39.5% as a UK citizen, which works out as £4.5m.

As an Indian citizen, the Indian government would tax dividends at 20% (a withholding tax). The UK government would tax the difference between that and the UK rate, or 19.5%. So Ms Murty saves £2.1m per year through her "non-dom" status.

She has also reportedly received income from companies based in Mauritius, which enjoys a more favourable tax treaty with India where the Indian government withholds just 15% of dividend income from Indian companies.

It is not known whether Murty holds these shares through a company based in a Mauritius or any other tax haven.

Labour party leader Sir Keir Starmer has called for "full transparency" from the chancellor over his family's finances.

A spokesperson for HM Treasury said: "The chancellor provided a full list of all relevant interests when he first became a Minister in 2018, as required by the Ministerial Code.

"The Independent Adviser on Ministers' Interests has confirmed that they are completely satisfied with the steps the Chancellor has taken to meet the requirements of the Code."

To be clear, Akshata Murty is not accused of any wrongdoing whatsoever. But someone with preferential tax status living in Number 11 Downing Street does pose uncomfortable questions for the other adult resident.

Newsletter

Related Articles

0:00
0:00
Close
Police Arrest Far-Right Activist After Migrant Dinghy Slashed in English Channel
Synthetic Opioids Drive Renewed Rise in Scotland’s Drug Deaths
Reported Assaults on Britain’s Railways Rise 20% in a Year
Vistry Cuts Profit Forecast as Losses Weigh on UK Housebuilder
TikTok Drops Appeal and Accepts £12.7 Million UK Data Protection Fine
Russell Group Urges UK Government to Drop Proposed International Student Levy
Legal & General Plans to Cut 1,000 Jobs by Mid-2027
UK Health Bill Would Remove Independent Governors From NHS Foundation Trusts
BMA Raises Patient Safety Concerns Over Advanced Practitioners Filling Doctor Rotas
UK’s Largest AI Supercomputer Delayed by Power Supply Constraints
NHS Orders Security Cameras in Neonatal Units Following Thirlwall Inquiry
Post-Brexit Trade Barriers Cost UK Economy Up to £6.5 Billion a Year, Analysis Says
UK Parliament Launches Inquiry Into Bank of England Monetary Policy Independence
Global Bond Selloff and Higher Oil Prices Narrow UK Budget Options
UK Prime Minister Andy Burnham Addresses UN and Holds First Meeting With Donald Trump
Royal Navy Commandos Complete Maritime Operations Training With US Navy SEALs
Vistry Profit Warning Adds to Concerns Over UK Housebuilding Conditions
UK Commits £343 Million to Major Expansion of Community Mental Health Services
Five Eyes Partners Back UK-Led Campaign Against Global Fraud Networks
UK Businesses Gain Full Access to £13 Trillion CPTPP Trading Bloc
UK Allocates Nearly £10 Billion for Council, Social and Affordable Housing
Chancellor John Healey Unveils Deregulation Drive to Accelerate UK Investment and Growth
Prime Minister Andy Burnham Sets Out Post-Brexit Foreign Policy Vision at United Nations
UK Reassesses Chagos Arrangements as Burnham Seeks New Path on Diego Garcia
Key Trends to Watch
Government’s “Buy British” Procurement Push Targets More Domestic Jobs and Industrial Capacity
Scotland Launches Four-Year Flood Resilience Programme With New Community Funding
Low-Income Renters Face Record Gap Between Housing Support and Private Rents
UK and US Test Torpedo Launch From British Undersea Drone in Defence Technology Milestone
Britain Pushes Artificial Intelligence Security Onto United Nations Security Council Agenda
Treasury Committee Defends Office for Budget Responsibility Independence Amid Fiscal Pressure
Scotland Records Eleven Per Cent Rise in Drug-Use Deaths as Cocaine and Nitazenes Drive Concern
Welsh Government Sets Four-Year Programme Around Health, Living Costs, Jobs and Housing
Study Finds Most People With High Blood Pressure in England Remain Undiagnosed
Britain Plans First National Workplace Health System to Tackle Economic Inactivity
England to Introduce Vocational GCSEs in Major Secondary Education Reform
UK Elevates Climate and Nature Risks to National Security Priority
Andy Burnham and Donald Trump Put Trade at Centre of First Major Bilateral Meeting
Andy Burnham and Ursula von der Leyen Push Ahead With Closer UK-European Union Economic Ties
UK Government Borrowing Jumps to Eighteen Point Three Billion Pounds Ahead of October Budget
Piddington Residents Back Symbolic Independence Vote Over Asylum Accommodation Plan
Reform UK Names Helen Jenner as New Leader in Wales
England Expands Devolution of Transport, Skills and Economic Development Powers
Liberal Democrats Call for Temporary Fuel Duty Cut to Ease Cost-of-Living Pressure
UK Farmers Warn Drought Has Caused Crop Failures and Reduced Harvests
UK Fixed Mortgage Rates Approach 6% as Lenders Raise Borrowing Costs
YouGov Poll Puts Labour at 23% With Conservatives and Reform UK on 21%
Badenoch Presses Burnham to Increase Defence Spending and Cut Welfare Costs
UK Military Figures Warn of Growing Threats to Undersea Infrastructure and National Readiness
BP Moves Ahead With Sale of UK North Sea Oil and Gas Business
×