London Daily

Focus on the big picture.
Wednesday, Sep 16, 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 Tighten Public-Order Measures After Anti-Immigration Protests in Dover and Portsmouth
UK Ministers Pressed for Answers After US Diplomat Accused of Child Abuse Images Leaves Britain
Jaguar Land Rover Pursues NATO Defense Contracts for Defender Vehicles
British Service Member Dies in Road Accident While Deployed in Ukraine
George Osborne Calls for Britain to Rejoin EU Customs Union
Anthropic Chief Dario Amodei Urges Faster UK Action on Advanced AI Risks
UK State Pension Set for 3.9% Rise Under Triple Lock
UK Labour Market Cools as Payrolled Employment Continues to Decline
Reform UK’s £72 Million in Donations Faces Scrutiny Under Proposed Retrospective Funding Rules
UK Doctors Warn Expanded Pharmacy First Scheme Could Put Patients at Risk
British Airlines Cut Short-Haul Capacity as Jet Fuel Costs Rise
UK News Publishers Forecast 40% Search Traffic Drop as AI Overviews Expand
Axel Springer Wins Approval for £575 Million Daily Telegraph Acquisition
London Mayor Sadiq Khan Opposes Heathrow Third Runway Over Climate Targets
Scotland, Wales and Northern Ireland Leaders Hold Summit Seeking Greater Autonomy
UK Energy Price Cap Set to Rise to £1,723 in October
UK Treasury Warns Middle East Conflict Is Threatening Economic Growth
Labour Moves to Retrospectively Cap Overseas Political Donations After Reform UK Funding Surge
HMRC Warns Nearly Seven Million Adults Are Unclear About State Pension Entitlements
UK Parliament Passes Sovereign Grant Reform Before Conference Recess
British Rail Passengers Gain Automatic Right to Switch Operators During Disruptions
Burnham Hosts Downing Street Business Summit as UK Fiscal Pressure Builds
Labour Government Moves to Challenge £72 Million in Reform UK Crypto Donations
UK Advertising Industry Warns Wider Junk Food Rules Could Put £1 Billion in Media Spending at Risk
Cornwall Opens Devolution Talks With UK Government Over Transport and Local Services
UK Parliament Considers Sovereign Grant Reform Setting Royal Funding at £99.9 Million
Trades Union Congress Calls for Income-Based Energy Tariff Funded by Higher Bank Levy
UK Prime Minister Rejects Second Scottish Independence Referendum
House of Lords Begins Scrutiny of Bill to Lower UK Voting Age to 16
Anthropic Says Claude Was Exploited in Weapons-Related and State-Linked Cyber Activity
Institute of Directors Urges UK Government to Avoid Business Tax Increases in Autumn Budget
Rising Gilt Yields Cut UK Fiscal Headroom to About £13 Billion Ahead of Budget
UK Economy Grows 0.4% in July as Services and Technology Activity Strengthen
UK Government Promises Clearer Student Loan Guidance After Repayment Backlash
Charities Warn Unpaid Carers May Die Before Receiving Government Compensation
Dover Unrest Prompts Review of UK Counter-Extremism Strategy
Celtic Summit Leaders Reassert Right to Pursue Independence From UK
NHS Records Busiest Summer on Record Amid Severe Heatwaves
Harrods Faces Potential £150 Million Compensation Bill Over Al Fayed Abuse Claims
UK Parliament Opens Debate on Landmark Assisted Dying Legislation
Metropolitan Police Investigate Reform UK Over Alleged Foreign Electoral Donations
UK Economy Expands 0.4% in July as AI Investment Boosts Activity
Bank of England Signals Caution on Rates as Inflation Pressures Persist
Tesco Alerts Police After Scammers Use Its Branding in AI-Generated Fraud
Lindy Cameron Appointed First Female Permanent Under-Secretary at UK Foreign Office
UK Government to Rewrite Student Loan Guidance After Mis-Selling Criticism
Welsh First Minister Warns Andy Burnham Government to Respect Devolution
Trump’s Falkland Islands Remarks Trigger New Diplomatic Tension With Britain
Reform UK Receives Record £72 Million Donation From Cryptocurrency Billionaires
UK Bans Imports From Israeli West Bank Settlements and Sanctions Supporting Institutions
×