London Daily

Focus on the big picture.
Saturday, Feb 07, 2026

Sunak’s wife to start pay UK tax for a change, after outcry, as PM denies non-dom knowledge

Sunak’s wife to start pay UK tax for a change, after outcry, as PM denies non-dom knowledge

Akshata Murty says she realises many felt her arrangements were not ‘compatible with my husband’s job as chancellor’ (her husband rips you off with taxes, while his wife and obviously his own household evading taxes)

Rishi Sunak’s wife, Akshata Murty, bowed to pressure to pay UK taxes on Friday night, after Boris Johnson said he had been unaware she was a “non-dom” and fresh questions emerged over the couple’s tax affairs.

With Sunak’s position under increasing threat, Murty said she realised many people felt her tax arrangements were not “compatible with my husband’s job as chancellor”, adding that she appreciated the “British sense of fairness”.

She will pay tax on all worldwide income in future and for the last tax year, but not on backdated income, which could have saved her an estimated £20m of UK tax on foreign earnings from her billionaire father’s Indian IT company.

However, her decision is unlikely to stop the scrutiny of Sunak and Murty’s tax affairs and financial interests, with calls from Labour and the Lib Dems for an investigation into whether Sunak has broken the ministerial code by failing to be transparent.

Sunak was on Friday forced to confirm he had a US green card– meaning he had declared himself a “permanent US resident” for tax purposes for 19 months while he was chancellor and for six years as an MP.

A source close to the couple also confirmed Murty held a green card as well.

The disclosure appears at odds with Sunak’s defence of his wife being a non-dom – he said she intended to one day return to live in India.

The Guardian has also discovered the Treasury last week brought in a new low tax scheme that is partly designed to benefit some wealthy non-dom investors – just days before Sunak’s national insurance rise hit millions of working people at the height of a cost of living crisis.

The new laws specifically mention fund manager non-doms as a category of people who can benefit by not having to pay tax on foreign earnings through the new vehicles.

The Treasury had previously claimed Sunak had made no changes to non-dom policy since 2017, raising new questions over whether the Treasury was fully informed about Sunak’s family’s tax arrangements when formulating policy.


In a press conference on Friday, Johnson admitted he had not been told about Murty’s non-dom status. But he denied anyone at No 10 was briefing against the Sunaks, and praised the chancellor for doing an “outstanding job”.

However, Downing Street insiders revealed that an away day this week descended into acrimony between No 10 and No 11 aides, over the source of the Murty leak and longstanding tensions over the Partygate scandal.

Tory MPs said they believed it was possible Johnson could seek to move Sunak from the Treasury in a summer or autumn reshuffle if he survives the current crisis threatening his chancellorship.

The revelations have prompted a political outcry over Sunak’s lack of transparency about his wife’s financial affairs.

While promising to pay UK tax on all income, Murty will retain her non-dom status, which could in future allow her family to legally avoid an inheritance tax bill of more than £275m.

In her statement, Murty said she did not want her non-dom status to be a “distraction” for her husband.

“For this reason, I will no longer be claiming the remittance basis for tax,” she said. “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. I do this because I want to, not because the rules require me to.

“These new arrangements will begin immediately and will also be applied to the tax year just finished.”

UK taxpayers are required to pay a 40% take on inheritance (above £325,000), while non-doms are exempt from the tax. Murty has assets of at least £690m held in Infosys shares, tax charged on this at a rate of 40% would be £276m.

Murty and Sunak also own four properties worth more than £15m in total, and she also holds substantial investments in other companies.

It is understood Sunak and Murty, who own a £5.5m California penthouse holiday home, have donated $3m (£2.3m) to a US university in recent years.

The chancellor’s spokesperson insisted that under US law “you are not presumed to be a US resident just by dint of holding a green card”.

She said Sunak followed all guidance and continued to file US tax returns, but specifically as a non-resident, in full compliance with the law.

“As required under US law and as advised, he continued to use his green card for travel purposes. Upon his first trip to the US in a government capacity as chancellor, he discussed the appropriate course of action with the US authorities. At that point it was considered best to return his green card, which he did immediately.

“All laws and rules have been followed and full taxes have been paid where required in the duration he held his green card.”


Holders of green cards are required to pay US tax on their worldwide income – and also to make a legal commitment to “make the US your permanent home”.

They are required to file annual US tax returns, and are “responsible for reporting your income and paying taxes on any foreign earned income”. This raises the suggestion that Sunak may have been required to pay US tax on his publicly funded MP’s salary.

Under non-dom rules, Murty did not legally have to pay tax in the UK on the estimated £11.5m in annual dividends she collects from her stake in Infosys, her billionaire father’s IT business. UK tax residents would be expected to pay about £4.5m in tax on the dividend payment.

Murty has said she paid tax on the dividends overseas, but has refused to state how much she paid or in which country. She has previously collected other shareholder income via the tax haven of Mauritius, which does not tax dividends.

Liberal Democrat leader, Ed Davey, has written to Simon Case, the cabinet secretary, and Lord Geidt, the independent adviser on ministers’ interests, demanding an urgent inquiry.

His letter said: “How could the man who is responsible for UK tax policy regard any permanent residency status for the United States as acceptable? This would be a huge conflict of interest – and a serious breach of the ministerial code.”

Sunak earlier told the Sun that Murty “loves her country like I love mine”, and said she had always been domiciled in India. He said she was entitled to use the non-dom arrangement as she was an Indian citizen and planned to move back to her home country to care for her parents.

Under non-dom rules, Murty previously paid £30,000 a year for the right not to pay UK tax on her overseas income. The status would have automatically ceased once she has resided in Britain for 15 years, a milestone it is understood she will reach in 2028.

On the tax breaks for fund manager non doms, a government spokesperson said the new regime “was consulted on widely and voted through by a majority in the House of Commons”.

They added: “It was introduced as part of a review aimed at boosting UK competitiveness – ensuring that taxes paid by those institutions affected was proportionate to other jurisdictions, enabling the UK to remain as an attractive place to invest and create jobs.”

Newsletter

Related Articles

0:00
0:00
Close
The Implications of Expanding Voting Rights to Non-EU Foreign Residents in France
Ghislaine Maxwell to Testify Before US Congress on February 9
Al.com Acquired by Crypto.com Founder for $70 Million
Apple iPhone Lockdown Mode blocks FBI data access in journalist device seizure
Belgium: Man Charged with Rape After Faking Payment to Sex Worker
KPMG Urges Auditor to Relay AI Cost Savings
US and Iran to Begin Nuclear Talks in Oman
Winklevoss-Led Gemini to Slash a Quarter of Jobs and Exit European and Australian Markets
Canada Opens First Consulate in Greenland Amid Rising Geopolitical Tensions
China unveils plans for a 'Death Star' capable of launching missile strikes from space
NASA allows astronauts to take smartphones on upcoming missions to capture special moments.
Trump administration to launch TrumpRx.gov for direct drug purchases
Investigation Launched at Winter Olympics Over Ski Jumpers Injecting Hyaluronic Acid
U.S. State Department Issues Urgent Travel Warning for Citizens to Leave Iran Immediately
Wall Street Erases All Gains of 2026; Bitcoin Plummets 14% to $63,000
Epstein Case Documents Reignite Global Scrutiny of Political and Business Elites
Eighty-one-year-old man in the United States fatally shoots Uber driver after scam threat
UK Royal Family Faces Intensifying Strain as Epstein-Linked Revelations Rock the Institution
Political Censorship: French Prosecutors Raid Musk’s X Offices in Paris
AI Invented “Hot Springs” — Tourists Arrived and Were Shocked
Tech Mega-Donors Power Trump-Aligned Fundraising Surge to $429 Million Ahead of 2026 Midterms
UK Pharma Watchdog Rules Sanofi Breached Industry Code With RSV Vaccine Claims Against Pfizer
Melania Documentary Opens Modestly in UK with Mixed Global Box Office Performance
Starmer Arrives in Shanghai to Promote British Trade and Investment
Harry Styles, Anthony Joshua and Premier League Stars Among UK’s Top Taxpayers
New Epstein Files Include Images of Former Prince Andrew Kneeling Over Unidentified Woman
Starmer Urges Former Prince Andrew to Testify Before US Congress About Epstein Ties
Starmer Extends Invitation to Japan’s Prime Minister After Strategic Tokyo Talks
Skupski and Harrison Clinch Australian Open Men’s Doubles Title in Melbourne
DOJ Unveils Millions of Epstein Files, Fueling Global Scrutiny of Elite Networks
France Begins Phasing Out Zoom and Microsoft Teams to Advance Digital Sovereignty
China Lifts Sanctions on British MPs and Peers After Starmer Xi Talks in Beijing
Trump Nominates Kevin Warsh as Fed Chair to Reorient U.S. Monetary Policy Toward Pro-Growth Interest Rates
AstraZeneca Announces £11bn China Investment After Scaling Back UK Expansion Plans
Starmer and Xi Forge Warming UK-China Ties in Beijing Amid Strategic Reset
Tech Market Shifts and AI Investment Surge Drive Global Innovation and Layoffs
Markets Jolt as AI Spending, US Policy Shifts, and Global Security Moves Drive New Volatility
U.S. Signals Potential Decertification of Canadian Aircraft as Bilateral Tensions Escalate
Former South Korean First Lady Kim Keon Hee Sentenced to 20 Months for Bribery
Tesla Ends Model S and X Production and Sends $2 Billion to xAI as 2025 Revenue Declines
China Executes 11 Members of the Ming Clan in Cross-Border Scam Case Linked to Myanmar’s Lawkai
Trump Administration Officials Held Talks With Group Advocating Alberta’s Independence
Starmer Signals UK Push for a More ‘Sophisticated’ Relationship With China in Talks With Xi
Shopping Chatbots Move From Advice to Checkout as Walmart Pushes Faster Than Amazon
Starmer Seeks Economic Gains From China Visit While Navigating US Diplomatic Sensitivities
Starmer Says China Visit Will Deliver Economic Benefits as He Prepares to Meet Xi Jinping
UK Prime Minister Starmer Arrives in China to Bolster Trade and Warn Firms of Strategic Opportunities
The AI Hiring Doom Loop — Algorithmic Recruiting Filters Out Top Talent and Rewards Average or Fake Candidates
Amazon to Cut 16,000 Corporate Jobs After Earlier 14,000 Reduction, Citing Streamlining and AI Investment
Federal Reserve Holds Interest Rate at 3.75% as Powell Faces DOJ Criminal Investigation During 2026 Decision
×