UK tax boss's wife to pay local taxes

https://www.bbc.com/news/uk-politics-61045825

Chancellor Rishi Sunak’s wife Akshata Murty has said she will pay UK taxes on her overseas income, following a row over her non-domicile status.

She owns £700m in shares of the Indian IT giant Infosys, founded by her father, from which she received £11.6m in dividend income last year.

As a non-domiciled (non-dom) UK resident she is not required by law to pay UK taxes on her overseas income.

But she told the BBC she did not want to be a “distraction” for her husband.

Her decision to change her tax arrangements follows accusations of hypocrisy against the chancellor, with opposition parties saying Mr Sunak’s family is benefiting at a time when the cost of living is going up.

The BBC estimates Ms Murty would have avoided £2.1m a year in UK tax through her non-dom status.

Jeff

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As far as I can see she has a Domicle of Choice in the UK. She owns two properties here and has been married to Sunak since 2009.

HMRC have been attacking such claim of non-domicile for some time, but she has no doubt been protected by her husband’s position:

A number of recent Tax Tribunal cases concerning domicile enquiries reflect what we are seeing in practice – that HMRC is increasingly questioning the domicile status of taxpayers who have been resident in the UK for a number of years. The key issue is whether those taxpayers have acquired a domicile of choice in England & Wales, Scotland or Northern Ireland.

https://www.bdo.co.uk/en-gb/insights/tax/private-client/domi…

She says that she will pay income tax and capital gains tax, but interestingly did not mention inheritance tax. India has no inheritance tax while the UK does (40%). If I were advising her I would suggest she looks to transfering the shares she ownes to a family trust in some tax shelter far from the UK’s shores.

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