UK Politics

The wife of Rishi Sunak, the British chancellor, has claimed non-domicile status to save on her tax bill, The Independent has revealed.It is not known exactly how much Akshata Murthy saved through this, but sources claimed it could have avoided her paying millions of pounds in tax on foreign earnings over several years. “Non-dom” status is lawful but controversial.It is an optional status for UK residents whose permanent home – or “domicile” – is abroad. With this status, these people may not have to pay tax on foreign income. The UK government says a person’s domicile is usually the country where their father considered his permanent home when they were born. But this can change if the person moved abroad and does not intend to return.If foreign income is less than £2,000 in a tax year and is not bought into the UK, for example transferred into a UK bank account, someone with non-dom status is not liable to pay UK tax on it. With income over £2,000 a year, or that bought into the UK, there are two options. Pay UK tax on foreign income and claim it back due to being taxed twice. The UK government says tax relief rules will usually give some or all of this tax backPay UK tax on foreign income bought into the UK only and pay an annual fee to avoid paying tax on the restThis option is available to those who have lived in the UK for a certain number of years; the annual fee is £30,000 for residents who have lived in the UK for at least seven out of the last nine tax years and £60,000 for 12 out of the last 14.The “non-dom” status means Ms Murthy she does not have to pay UK tax on income from dividends from foreign investments, rental payments on property overseas or bank interest. It also means a person avoids UK inheritance tax.A spokesperson for Ms Murthy, whose family business is estimated to be worth £3.5bn, claimed she had to use non-dom status because of her Indian citizenship.They said: “India does not allow its citizens to hold the citizenship of another country simultaneously. 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 the revelation will nonetheless fuel accusations that the chancellor is out of touch with working people facing a cost-of-living crisis.Labour has called on Mr Sunak to “urgently explain how much he and his family have saved on their own tax bill at the same time he was putting taxes up for millions of working families”. More

Labour is demanding that Rishi Sunak answer 12 key questions about his wife’s non-dom status, including whether he has benefited personally.As the controversy grows, the chancellor has been urged to set out how much tax has been saved and how he has “ensured he is not involved in Treasury discussions” about the rules.“As chancellor it is crucial you both follow the rules and lead by example,” James Murray, a shadow Treasury minister has written.“Any impression that there is one set of rules favouring a few, and another for everyone else, threatens the integrity of tax policy in our country.”The letter comes after Boris Johnson suggested it is wrong to ask questions about Akshata Murty’s non-dom status – revealed by The Independent – because families should be kept out of politics.The prime minister swerved the row, despite pressure for her to explain her claim that she has non-dom status because she is an Indian citizen – which was ridiculed by tax experts.They pointed out that that a person must request non-dom status and then choose whether to pay UK tax on foreign income, or claim “remittance basis” to avoid that.Labour says the questions the chancellor must answer are:* How much have you benefited from Ms Murty’s tax status as a ‘non-dom’?* Has Ms Murty ever claimed the remittance basis?* Do you accept that claiming the remittance basis is an “active choice” and not something that follows automatically from citizenship?* What is the location of Ms Murty’s claimed domicile?* Why is it not the UK, given her life suggests she intends to permanently remain in the UK?* For how long has Ms Murty been claiming the remittance basis?* How much tax has been saved by claiming the remittance basis?* Where are all of Ms Murty’s non-UK income and gains fully taxed?* Does Ms Murty hold investments/property through trusts or companies in offshore jurisdictions?* Will Ms Murty commit not to put assets into trusts before relinquishing remittance basis – after 15 years – to avoid resultant tax?* Do you support the claim of Ms Murty’s spokesperson that her Indian citizenship means she must be treated as non-domiciled for UK tax purposes?* What measures have you put in place to ensure that you are not involved in Treasury discussions around potential amendments to the non-domicile status rules?Mr Murray added: “It appears Ms Murty has used her ‘non-domicile’ tax status to reduce the amount of tax she pays on her overseas earnings.“In the public interest, I would urge you to be transparent about the details of this matter without delay.” More

Rishi Sunak’s wife avoids tax through non-dom statusLabour is urging Rishi Sunak to come clean as to whether he has benefited from his wife’s non-dom tax status.The party have demanded the Chancellor answer 12 central questions about whether he personally benefited from Akshata Murthy’s tax arrangement which means she is not legally entitled to pay tax in Britain on foreign income.Mr Sunak has been called upon to set out how much tax has been saved and how he has “ensured he is not involved in Treasury discussions” about the rules.“As chancellor it is crucial you both follow the rules and lead by example,” James Murray, a shadow Treasury minister has written.“Any impression that there is one set of rules favouring a few, and another for everyone else, threatens the integrity of tax policy in our country.”It comes after Mr Sunak’s family was accused of “sheltering” itself from paying tax in the UK through the non-dom status which Ms Murty has confirmed.Show latest update

16493427113,000 more Covid deaths added to UK’s official figures after discovery of data errorAlmost 3,000 more Covid-19 deaths have been added to the UK’s official figures after a data error was discovered.In addition to 233 newly-reported deaths, the cumulative number of people who have died within 28 days of testing positive for coronavirus jumped by an extra 2,714 on Wednesday.This means the total number of deaths in the UK within 28 days of a positive test now stands at 169,095.The UK Health Security Agency said that “due to a data processing error, a number of people who died within 28 days of a positive Covid-19 test were not reported in a timely manner”.My colleague Maryam Zakir-Hussain reports:Emily Atkinson7 April 2022 15:451649342055Poland thanks UK for support in aiding efforts to help Ukrainian refugeesPoland’s president has thanked the UK for supporting the country and for better equipping it to aid Ukrainian refugees fleeing war.Speaking alongside Boris Johnson at Downing Street today, Andrzej Duda said: “Thank you for supporting Polish people, and this is something that I would like to express my gratitude for, thank you because in this way we are able to better help our Ukrainian guests, our brothers, who are coming to Poland as a result of war.”He said the two would discuss “how we can support Ukrainian defenders” and “how we can make sure that the sanctions are stepped up”, among other topics.He also spokes about the situation in Bucha, Ukraine, saying “the pictures of that massacre recall the worst pictures that we know from the Second World War”.He said Russia’s actions in Ukraine have been “a clear and blatant violation of international law, but what we have seen is also a blatant violation of the law of war”.Emily Atkinson7 April 2022 15:341649341275Watch: Johnson announces ‘Energy Security Strategy’ to bring cleaner, affordable power to UKJohnson announces ‘Energy Security Strategy’ to bring cleaner, affordable power to UKEmily Atkinson7 April 2022 15:211649340468UK to send £30 million to Poland, PM saysThe UK will send £30 million to Poland in a bid to launch a “proper thoroughgoing security defence partnership” with the country, Boris Johnson today announcedSpeaking alongside Polish President Andrzej Duda, Mr Johnson said: “What is going on today, the current crisis is bringing us even closer together. And with every day that goes by, we see the opportunity to do more together.“And that’s why we want to take steps now together and your visit in London is an important moment, an opportunity to do this, to launch a proper thorough going security defence partnership.”He said “we already do a lot together” but added “there is much much more that we can do”, and said he hopes to discuss it in the days and weeks ahead.He added: “For the immediate future the UK and Poland will work together to try to alleviate the suffering in Ukraine in any way that we can. I think we’re now sending another £30 million to support Poland.”Emily Atkinson7 April 2022 15:071649340016‘Extremely busy’ ex-Tory minister Eric Pickles tells Grenfell Inquiry not to waste his timeA former Conservative cabinet minister has provoked anger after telling the Grenfell Inquiry not to waste his time because he is “extremely busy”.Eric Pickles, who was housing secretary, was being grilled about programme to cut “red tape“ he oversaw in government – and whether it compromised building safety regulations.72 people died in the Grenfell Tower disaster, a social housing block that had been covered in unsafe flammable cladding.But the public inquiry was left stunned on Thursday after the irate Lord Pickles, who is now a Tory peer, responded to questioning by saying he had been promised he could leave soon.Our policy correspondent Jon Stone reports:Emily Atkinson7 April 2022 15:001649339452Watch: Business secretary Kwasi Kwarteng says energy bills could reduce within 3 yearsBusiness secretary Kwasi Kwarteng says energy bills could reduce within 3 yearsEmily Atkinson7 April 2022 14:501649338360Scotland to face ‘cost of living election’ as local government ballot loomsScotland’s anticipated local government ballot will be the “cost-of-living election”, the country’s Labour leader has said.Anas Sarwar was speaking on Thursday as he unveiled his party’s manifesto for the upcoming vote on 5 May.Mr Sarwar said the ballot should not be focused on the “bitter division of the past”, but rather on helping the public through the ongoing cost-of-living crisis.Mr Sarwar said: “People are having to decide whether they’ll perhaps pass on lunch or dinner to make sure they can feed their children.”He added: “That’s the harsh reality facing so many of our fellow citizens right here in Scotland every single day.“That difficult choice between heating and eating is not about political debate, it’s a real lived experience for thousands of our fellow citizens every single day.“That’s what this election is about. This is a cost-of-living election. An election that is based around the people and not about the divisive politics of the SNP and the Tories.”Emily Atkinson7 April 2022 14:321649337198Breaking: Labour tells Rishi Sunak to come clean on whether he has benefited from wife’s non-dom statusLabour is demanding that Rishi Sunak answer 12 key questions about his wife’s non-dom status, including whether he has benefited personally.As the controversy grows, the chancellor has been urged to set out how much tax has been saved and how he has “ensured he is not involved in Treasury discussions” about the rules.More to follow from our deputy political editor Rob Merrick:Emily Atkinson7 April 2022 14:131649336609UK to boost arms supply to UkraineBritain to looking to step up its supply of arms to Ukraine in a bid to boost its defences against the Russian invasion.Prime minister Boris Johnson said the UK is “certainly looking at what more military assistance we can give” as Nato allies considered how to bolster Ukraine’s resistance.Ukrainian generals have visited the UK to see some of the kit that could potentially be offered, including armoured vehicles which could offer troops protection from Russian attack as they move around the war zone.Emily Atkinson7 April 2022 14:031649335715Watch live as Boris Johnson welcomes Polish president at Downing StreetWatch live as Boris Johnson welcomes Polish president at Downing StreetEmily Atkinson7 April 2022 13:48 More

A former Conservative cabinet minister has provoked anger after telling the Grenfell Inquiry not to waste his time because he is “extremely busy”. Eric Pickles, who was housing secretary, was being grilled about a programme to cut “red tape” that he oversaw in government – and whether it compromised building safety regulations.The 2017 Grenfell Tower disaster, which saw the social housing block go up in flames after it had been covered in unsafe flammable cladding, resulted in the deaths of 72 people.But the public inquiry was left stunned on Thursday after the irate Lord Pickles, who is now a Tory peer, responded to questioning by saying he had been promised he could leave soon.Apparently angry at the line of questioning about a government document promising to cut red tape in the construction industry, Lord Pickles said: “By all means sir, feel free to ask me as many questions as you like – but could I respectfully remind you that you did promise that we would be away this morning and I have changed my schedules to fit this in. I do have an extremely busy day.”Conceding that the inquiry was “more important than anything” in his schedule he then added: “I urge you to use your time wisely.”The former cabinet minister’s comments were met with a brief stunned silence before the inquiry’s chief counsel Richard Millett QC replied: “Right… May I please have an answer to my question?”The peer said: “I have answered it, I have answered it to the point of exhaustion, this document has no status.”Responding to the former minister’s outburst, a spokesperson for Justice4Grenfell told The Independent that the former minister lacked “humanity”. “Eric Pickles should use his time wisely to meet each of the families of the 72 children, women and men who lost their lives at Grenfell,” she said. More

Rishi Sunak rejected proposals from a fellow cabinet minister to give more help to families hit by soaring home energy bills, a leaked document reveals.The chancellor was urged to rethink a £200 loan that households will receive in the autumn – amid widespread criticism that the “heat now, pay later” scheme will pile up further debt.The Department for Business put forward three options to ease the cost of living crisis, as part of the energy security strategy that aims to wean the UK off foreign fossil fuels.Kwasi Kwarteng’s department suggested increasing the £200 payment to “£500 or more”, either for all households or the poorest, an early draft obtained by the i newspaper shows.A second option would have delayed repayment of the £200, which the Treasury is saying must be refunded at the rate of £40 a year over the following five years,Third, the business secretary’s officials proposed exempting the poorest homes from the need to repay at all, turning the help into a grant.A Treasury spokesperson did not dispute that the proposals were rejected, after they did not appear in the strategy – which is under fire for failing to offer any immediate help with bills.Mr Kwarteng admitted it would be at least “two or three years” before new infrastructure investments will have any impact on soaring fuel costs.The price cap on annual domestic bills leapt by almost £700 this month, to nearly £2000 – and is expected to soar by up to a further £1,000 in the autumn.Analysts have warned that the UK is heading for the worst plunge in living standards since the 1950s and an explosion in poverty that will push 500,000 more children below the breadline.The End Fuel Poverty Coalition has warned that vulnerable families will be pushed further into debt by loan, also criticising the decision to make it compulsory.Labour has branded it “a scam”, arguing around one million people who will not receive it – first time buyers, separated couples, students and care leavers – will still be liable for the future charges.Asked if Mr Sunak had rejected the proposed rethink, a Treasury spokesperson told The Independent: “We are not commenting on leaked documents.”The leak also revealed that Mr Kwarteng’s hopes of dramatically increasing onshore wind farm investment also bit the dust in the Whitehall wrangling.The early draft proposed increasing output to 45GW by 2035, saying: “Onshore wind is currently the second cheapest form of electricity generation.”But Boris Johnson bowed to pressure from Tory MPs to keep the strict planning rules that are an effective ban on new onshore wind farms.Asked why, the prime minister said: “People feel that they affect the beauty of the countryside, I understand that.” More

Boris Johnson has suggested it is wrong to probe the non-dom status of Rishi Sunak’s wife, because families should be kept out of politics.Quizzed about The Independent’s revelations that Akshata Murty is avoiding paying UK tax on her foreign earnings, the prime minister refused to comment on the controversy.He told reporters: “I think it is very important in politics, if you possibly can, to try and keep people’s families out of it.”Mr Johnson swerved the row, despite growing pressure for Ms Murty to explain her claim that she has non-dom status because she is an Indian citizen – widely criticised as misleading.Keir Starmer stepped up Labour’s attack on the chancellor – pointing to the 15 tax rises Mr Sunak has introduced and calling the situation “breathtaking hypocrisy”.The chancellor has declined to comment on the controversy, while a spokesperson for Ms Murty claimed she had to use non-dom status because of her Indian citizenship.“Akshata Murty is a citizen of India, the country of her birth and parent’s home. India does not allow its citizens to hold the citizenship of another country simultaneously,” the spokesperson 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.”However, the explanation was ridiculed by tax experts – who pointed out that a person requests non-dom status, which is not granted automatically.HMRC guidance states that a non-domiciled person can choose whether to pay UK tax on foreign income, or to claim “remittance basis”, allowing UK tax to be avoided.Chris Bryant, a senior Labour MP, said of Ms Murty’s explanation: “This is just wrong. Non-dom status is not automatic and the Treasury needs to urgently clarify this inaccurate statement.“This is a chancellor who just yesterday raised taxes on families who are struggling under the rising cost of living. The British public deserves to know how much he and his family have saved on their own tax bill.”Earlier, the business secretary claimed Mr Sunak has been “very transparent” about his family’s financial affairs, despite his refusal to answer questions about his wife’s Russian “blood money” from a stake in the Indian tech firm Infosys.Kwasi Kwarteng also argued that non-domiciled status has been “part of the UK tax system for more than 200 years”.But the Labour leader demanded: “We need complete transparency on this so that we can all understand what schemes she may have been using to reduce her own tax.“To use a scheme when the chancellor is out there, day after day, saying we need tax rises on millions of people in this country who are really, really struggling is breathtaking hypocrisy,” Sir Keir said. More

Cabinet minister Kwasi Kwarteng has insisted the public “can reach their own conclusions” on the tax affairs of chancellor Rishi Sunak’s millionaire wife, Akshata Murty.In an attempt to defend the Ms Murthy, the business secretary also said that the the non-domiciled status has been “part of the UK tax system for more than 200 years”.It comes afterThe Independent revealed the chancellor’s wife, whose family business is estimated to be worth around £3.5 billion, has claimed the “non-dom” status in order to save on her tax bill.Last week, as the chancellor faced questions over Ms Murty’s stake in IT and services giant Infosys — a company founded by her father — Mr Sunak said his wife had been “attacked”.“You know, I think it’s totally fine for people to take shots at me. It’s fair game. I’m the one sitting here and that’s what I signed up for.”Speaking on Sky News, Mr Kwarteng said he agreed with the chancellor, saying: “It’s completely unfair to be bringing someone who is not a politician and essentially attacking them in the way that’s happening. I totally agree with him on that”.Quizzed on her tax status, the business secretary said: “She made it very clear that as an Indian national she can’t have dual citizenship and she’s got a non-don status here in the UK.“After 15 years staying here she will be domiciled, but for the moment she pays on UK income as I understand and on foreign income she pays tax outside the UK — that’s what non-domiciled status means.“But I haven’t come here to comment on her tax affairs,” he added, as the cabinet minister prepares to unveil the government’s energy security strategy.Pressed about the optics — just as the government introduces a manifesto-busting tax hike and consumers’ energy bills spike — he replied: “People can reach their own conclusions, that’s up to viewers. More