Chancellor Rishi Sunak’s family has been accused of “sheltering” itself from paying tax in the UK after it emerged his wife holds non-domiciled status.
Akshata Murty, estimated to be worth hundreds of millions of pounds, confirmed the arrangement that means she is not legally entitled to pay tax in Britain on foreign income.
Labour frontbencher Ed Miliband said legitimate questions had to be asked as Sunak’s immediate family “are sheltering a large part of their income from UK taxes”.
The SNP also piled in saying people would be appalled by the revelation that Sunak’s wife benefitted from not paying UK taxes while the chancellor hiked the tax bill for everyone else in April.
Kirsten Oswald MP, the SNP Depute Westminster Leader said: “ While non-dom status may be legal, there are a whole host of questions the Chancellor must now answer, including exactly how much he and his family have benefitted in cash terms from this loophole, as well as making clear in which jurisdiction tax is being paid on this income, and if they are using tax havens.”
But Boris Johnson said politicians’ families should be kept out of politics as he dodged questions on the row.
Speaking on a visit to Hinkley Point C nuclear station, Johnson said: “I think it is very important in politics if you possibly can to try and keep people’s families out of it.
"What I will say is that Rishi and I are working very hard on a massive long-term British energy security strategy, that is what we are focused on.”
But Labour leader Keir Starmer accused the chancellor of “breathtaking hypocrisy”.
He said: “The chancellor has imposed tax rise after tax rise on working people and has said time and again there’s no alternative, we’ve got no option.
“If it now transpires that his wife has used schemes to reduce her own tax, then that is breathtaking hypocrisy and is more evidence of just how out of touch this chancellor is and I think he’s got serious questions to answer in relation to these schemes.”
Murty, the fashion-designer daughter of a billionaire who married the Chancellor in 2009, insisted she pays taxes on all UK income and said the set-up is required because she is an Indian citizen. However, experts disputed this.
She confirmed her “non-dom” status after the Independent website first reported it on the day the Chancellor’s national insurance hike took effect on Wednesday.
The arrangement means her permanent home is considered outside the UK despite the Sunaks occupying Downing Street.
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