London Daily

Focus on the big picture.
Wednesday, Jul 29, 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
Trump says Israel ‘would not survive’ without US
France Evacuates Atlantic Coast Resorts as Wildfire Risk Rises Again
Magnitude 7.1 Earthquake Strikes Kumamoto as Rescuers Search Collapsed Buildings
OpenAI Faces Demands for Full Disclosure After Models Breach Hugging Face
Nvidia Reportedly Takes Vast Texas Data-Centre Lease to Underwrite AI Expansion
Royal Collection Trust Income Falls as Palace Visits Retreat From Record Highs
FIFA’s Private-Investment Plan for World Cup Rights Draws European Revolt
Ministers Examine Social-Care Levy as Burnham Seeks Funding Settlement
Apple Briefly Crosses Five Trillion Dollar Valuation as Investors Retreat From AI Bets
Badenoch Offers Tory Votes to Keep Serious Offenders in Prison
Why Americans Queue for $15 Ice Cream and a $100 Caviar Pint
Another AI Genius Left the United States — and Silicon Valley Is Starting to Worry
Shein Reports $99mn Loss as Trade Barriers Test Low-Cost Model
CXMT Gains 466% in China’s Biggest IPO Since 2010
Amazon Seeks Approval for 5,105-Satellite Mobile Network
Burnham Puts School-to-Work Reform at Centre of Welfare Strategy
Johnson & Johnson Agrees to $5.5 Billion Talc Lawsuit Settlement
EU AI Act Shapes Global Corporate Standards, Study Finds
UK-Japan Relations Expected to Deepen Under Burnham Government
Burnham Signals Tough Decisions on Council Tax Reform
UK Inflation Slows to 2.6% in June
Bank of England Holds Interest Rates at 3.75%
Prime Minister Burnham Opens Talks With Business Leaders on Economic Growth
Government Launches 'Number Ten North' to Drive UK Devolution
Labour Regains Poll Lead After Burnham's First Weeks in Office
Prime Minister Burnham Rules Out Early UK General Election Before 2029
Burnham Rules Out Replacing Council Tax and Stamp Duty
Fresh Heatwave Threatens to Rekindle France’s Historic Wildfire Crisis
The Burnham government is seeking to establish its credibility through ambitious social care reform while maintaining fiscal discipline and public confidence in the National Health Service. Labour's early improvement in opinion polls provides political momentum, but sustained support will depend on delivering tangible policy outcomes. Britain continues to reinforce its role in European security through long-term support for Ukraine, while climate-related risks, including increasingly severe wildfires across England and Scotland, are becoming a more prominent national resilience challenge alongside economic uncertainty.
United Kingdom Economy Remains Exposed to Global Energy Risks
Prime Minister Dismisses Calls for an Early General Election
Scottish Wildfires Continue to Stretch Emergency Services
United Kingdom Faces Rising Wildfire Risk as Heatwave Continues
Lower Oil Prices Ease Inflation Concerns and Support Financial Markets
Financial Conduct Authority Launches Consumer Campaign on Car Finance Compensation
Government Prioritises Employment Over Benefit Cuts in Welfare Reform Plans
Prime Minister Rules Out Sweeping Property Tax Changes Before Autumn Budget
AstraZeneca Beats Expectations as Cancer Medicines Drive Strong Profit Growth
Labour Regains Narrow Polling Lead After Burnham's First Week in Office
United Kingdom Reaffirms Long-Term Commitment to Ukraine Under Burnham Government
Prime Minister Andy Burnham Makes Social Care Reform the First Major Test of His Government
Following OpenAI's Cyberattack: 'Most Companies Still Do Not Understand What Is Coming'
Autopsy Finds No Violence in Death of Epstein-Linked Model Scout
Indian Education Minister Resigns After Cockroach Youth Protests
California Desert Data-Centre Plan Stalls as Water and Power Disputes Mount
Northern Ireland Border Security Tightened After Military-Grade Explosive Interception
British Hospitality Sector Targets Summer Visitors Through Regional Promotions
England River Access Debate Intensifies After New Data Shows Limited Public Access
Royal Navy Strengthens Maritime Vigilance Amid Rising Security Concerns
UK Education Department Expands Mental Health Support for Young People Entering Work
×