Rishi Sunak and his family potentially saved tens of millions of pounds in taxes through his wife’s non-dom status, Labour has said as it sought to maintain pressure on the Chancellor.
Akshata Murty announced on Friday that she would pay UK taxes on all her worldwide income as she did not want her financial arrangements to be a “distraction” for her husband.
The dramatic move came after Mr Sunak had previously denounced the disclosure of his wife’s tax status as a “smear” by opponents intended to damage him politically.
It has been estimated that Ms Murty, a fashion designer and the daughter of an Indian billionaire, potentially saved up to £20 million in UK tax through the arrangement.
She is reported to hold a 0.91% stake in Infosys, an IT business founded by her father, and has received £11.6 million in dividends from the Indian firm in the past year.
Non-dom status means she would not have to pay UK tax at a rate of 39.35% on dividends.
India sets the rate for non-residents at 20%, but this can fall to 10% for those who are eligible to benefit from the UK’s tax treaty with India.
Labour has also questioned whether she would use her Indian citizenship and a treaty with the UK dating back to the 1950s to avoid paying inheritance tax – a move which could reportedly save tens of millions of pounds.
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