London Daily

Focus on the big picture.
Wednesday, Sep 17, 2025

Tax evasion: Chancellor's wife pays £30,000 a year for non-dom status

Tax evasion: Chancellor's wife pays £30,000 a year for non-dom status

While her husband is in charge to rip you off with endless taxes, his wife manipulated the system for tax evasion: Akshata Murty is charged yearly fee for status allowing her not to pay UK tax on overseas earnings.

Akshata Murty is reported to have received £11.6m in dividends in the past year from Indian firm Infosys.

But her non-dom status means she is not liable for UK tax on income earned abroad. She would not have paid UK tax, at a rate of 39.35%, on the dividends.

The £30,000 fee is chargeable if a person has lived in the UK for at least seven of the previous nine years.

Under government rules, people can be granted non-dom status - meaning the UK is not considered their permanent home - if they live in the UK but intend to go back to their home country.

Labour leader Sir Keir Starmer said Mr Sunak faced "very serious questions to answer" about his family's finances, adding: "If it now transpires that his wife has used schemes to reduce her tax, while he's been increasing taxes on working people, that's breathtaking hypocrisy."

The Liberal Dems have urged Mr Sunak to ban the partners of ministers from claiming non-dom status, calling it a "loophole".

Ms Murty is an Indian citizen and has retained family ties there, and the BBC understands she has said she would eventually like to return there.

She owns a 0.9% stake in the software firm Infosys - founded by her billionaire father - estimated to be worth more than £500m.

Business Secretary Kwasi Kwarteng defended Mr Sunak, saying it was "completely unfair" to scrutinise the tax affairs of Ms Murty, "who is not a politician" and rejecting opposition claims that she was sheltering from UK taxes.

And 10 Downing Street has dismissed reports that it is behind a series of politically damaging leaks against the chancellor as "baseless" and "categorically untrue."

What is a non-dom?


A non-dom is a UK resident who declares their permanent home, or domicile, outside of the UK.

A domicile is usually the country his or her father considered his permanent home when they were born, or it may be the place overseas where somebody has moved to with no intention of returning.

For proof to the tax authority, non-doms have to provide evidence about their background, lifestyle and future intentions, such as where they own property or intend to be buried.

Those who have the status must still pay UK tax on UK earnings but do not need to pay UK tax on foreign income. They can give up their non-dom status at any time by stating on a tax return that they intend to live in the UK and wish to be considered British for tax purposes.

Ms Murty has chosen to be domiciled in India via her father, the billionaire Narayana Murty, which means she doesn't need to pay taxes in the UK on dividends she receives from her stake in his company.

Ms Murty married Mr Sunak in 2009.

The fee for non-dom status rises to £60,000 a year when a person has been in the UK for at least 12 of the previous 14 years.

And anyone living in the UK for 15 years automatically loses the status.

Ms Murty has declined to say when her non-dom status began.

"India does not allow its citizens to hold the citizenship of another country simultaneously," Ms Murty's spokeswoman said. "So, according to British law, Ms Murty is treated as non-domiciled for UK tax purposes.

"She has always and will continue to pay UK taxes on all her UK income."

But tax experts have questioned Ms Murty's statement, suggesting UK non-dom status is a "choice" and something people can give up.

Asked if Ms Murty paid tax on her Infosys dividend payments in India, her representative said "international tax" was paid on her "international income".

It is not clear, however, whether she pays tax on her dividend income in India or another jurisdiction.

Where is the tax paid?


The Indian government says dividend income is taxable at the rate of 20% for non-residents, unless they qualify for any deductions.

But the dividend rate can come down to 10% for people who are eligible to benefit from the UK's tax treaty with India.

In a letter to Mr Sunak, Labour asked if his wife paid all foreign tax in India or in a tax haven such as the Cayman Islands.

The chancellor made the Cabinet Office aware of his wife's tax status as part of his declaration of interests when he first became a government minister in 2018.

In an interview with the Sun newspaper, Mr Sunak said Ms Murty "followed the letter of the law" over taxes.

"To smear my wife to get at me is awful," he added, saying: "And if she was living here and didn't just happen to be married to me, this obviously would not be at all relevant."

Comments

Lord William Bentinck 3 year ago
Is this the corrupt person with the image of the typical charming crook, who we think might be the next Britain’s prime minister? When will we stop being impressed by crooks who speak well and begin to be impressed by decent politicians who DO well?
“Sir” Warren Hastings 3 year ago
Indians importing to the UK the corruption-culture UK previously exported to India…

Newsletter

Related Articles

0:00
0:00
Close
Hong Kong Industry Group Calls for HK$20 Billion Support Fund to Ease Property Market Stress
Joe Biden’s Post-Presidency Speaking Fees Face Weak Demand amid Corporate Reluctance
Charlie Kirk's murder will break the left's hateful cancel tactics
Kash Patel erupts at ‘buffoon’ Sen. Adam Schiff over Russiagate: ‘You are the biggest fraud’
Homeland Security says Emmy speech ‘fanning the flames of hatred’ after Einbinder’s ‘F— ICE’ remark
Charlie Kirk’s Alleged Assassin Tyler Robinson Faces Death Penalty as Charges Formally Announced
Actor, director, environmentalist Robert Redford dies at 89
The conservative right spreads westward: a huge achievement for 'Alternative for Germany' in local elections
JD Vance Says There Is “No Unity” with Those Who Celebrate Charlie Kirk’s Killing, and he is right!
Trump sues the 'New York Times' for an astronomical sum of 15 billion dollars
Florida Hospital Welcomes Its Largest-Ever Baby: Annan, Nearly Fourteen Pounds at Birth
U.S. and Britain Poised to Finalize Over $10 Billion in High-Tech, Nuclear and Defense Deals During Trump State Visit
China Finds Nvidia Violated Antitrust Laws in Mellanox Deal, Deepens Trade Tensions with US
US Air Force Begins Modifications on Qatar-Donated Jet Amid Plans to Use It as Air Force One
Pope Leo Warns of Societal Crisis Over Mega-CEO Pay, Citing Tesla’s Proposed Trillion-Dollar Package
Poland Green-Lights NATO Deployment in Response to Major Russian Drone Incursion
Elon Musk Retakes Lead as World’s Richest After Brief Ellison Surge
U.S. and China Agree on Framework to Shift TikTok to American Ownership
London Daily Podcast: London Massive Pro Democracy Rally, Musk Support, UK Economic Data and Premier League Results Mark Eventful Weekend
This Week in AI: Meta’s Superintelligence Push, xAI’s Ten Billion-Dollar Raise, Genesis AI’s Robotics Ambitions, Microsoft Restructuring, Amazon’s Million-Robot Milestone, and Google’s AlphaGenome Update
Le Pen Tightens the Pressure on Macron as France Edges Toward Political Breakdown
Musk calls for new UK government at huge pro-democracy rally in London, but Britons have been brainwashed to obey instead of fighting for their human rights
Elon Musk responds to post calling for the murder of Erika Kirk, widow of Charlie Kirk: 'Either we fight back or they will kill us'
Czech Republic signs €1.34 billion contract for Leopard 2A8 main battle tanks with delivery from 2028
USA: Office Depot Employees Refused to Print Poster in Memory of Charlie Kirk – and Were Fired
Proposed U.S. Bill Would Allow Civil Suits Against Judges Who Release Repeat Violent Offenders
Penske Media Sues Google Over “AI Overviews,” Claiming It Uses Journalism Without Consent and Destroys Traffic
Indian Student Engineers Propose “Project REBIRTH” to Protect Aircraft from Crashes Using AI, Airbags and Smart Materials
French Debt Downgrade Piles Pressure on Macron’s New Prime Minister
US and UK Near Tech, Nuclear and Whisky Deals Ahead of Trump Trip
One in Three Europeans Now Uses TikTok, According to the Chinese Tech Giant
Could AI Nursing Robots Help Healthcare Staffing Shortages?
NATO Deploys ‘Eastern Sentry’ After Russian Drones Violate Polish Airspace
Anesthesiologist Left Operation Mid-Surgery to Have Sex with Nurse
Tens of Thousands of Young Chinese Get Up Every Morning and Go to Work Where They Do Nothing
The New Life of Novak Djokovic
The German Owner of Politico Mathias Döpfner Eyes Further U.S. Media Expansion After Axel Springer Restructuring
Suspect Arrested: Utah Man in Custody for Charlie Kirk’s Fatal Shooting
In a politically motivated trial: Bolsonaro Sentenced to 27 Years for Plotting Coup After 2022 Defeat
German police raid AfD lawmaker’s offices in inquiry over Chinese payments
Turkish authorities seize leading broadcaster amid fraud and tax investigation
Volkswagen launches aggressive strategy to fend off Chinese challenge in Europe’s EV market
ChatGPT CEO signals policy to alert authorities over suicidal youth after teen’s death
The British legal mafia hit back: Banksy mural of judge beating protester is scrubbed from London court
Surpassing Musk: Larry Ellison becomes the richest man in the world
Embarrassment for Starmer: He fired the ambassador photographed on Epstein’s 'pedophile island'
Manhunt after 'skilled sniper' shot Charlie Kirk. Footage: Suspect running on rooftop during panic
Effective Protest Results: Nepal’s Prime Minister Resigns as Youth-Led Unrest Shakes the Nation
Qatari prime minister says Netanyahu ‘killed any hope’ for Israeli hostages
King Charles and Prince Harry Share First In-Person Moment in 19 Months
×