UK tax boss's wife to pay local taxes

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.


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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.…

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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