Rishi Sunak’s millionaire husband’refused to pay tax using nondom status’

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Akshata Murthy, whose family business is estimated to be worth around £3.5bn, was automatically classified as a non-dom and it may have saved her millions of pounds

Chancellor Rishi Sunak’s millionaire spouse is registered in the UK as a nondomicile, which could have allowed her to save millions of dollars in taxes.

Akshata Murthy, whose family business is estimated to be worth around £3.5bn, may have used the status to save money in tax over several years, including while her husband set rates for the UK after he entered the Treasury in 2019.

This classification is legal and does not constitute tax. It can help an individual avoid paying UK tax on dividends from foreign investments, rental income on property overseas, or interest earned from a bank. This allows individuals to avoid inheritance tax in Britain.

Ms Murthy’s spokeswoman stated that the businesswoman was not entitled to non-dom, but was automatically classified as such by virtue of her Indian citizenship.

It is believed the Chancellor registered the non-dom status of his wife with the Cabinet Office when the minister was promoted in 2018.

Although it isn’t known how much Ms Murthy has saved, a report from the Independent cites sources that claim she has saved many millions over the years.

They said: “Akshata Murthy is a citizen of India, the country of her birth and parent’s home. India doesn’t allow citizens of other countries to have the same citizenship.

“So, according to British law, Ms Murthy is treated as non-domiciled for UK tax purposes. She has always and will continue to pay UK taxes on all her UK income.”

It is understood the Treasury is aware of Ms Murthy’s tax status and that under current law, she will automatically be deemed domiciled after living in the UK for 15 years.

The news comes after pollsters record a massive drop in the Chancellor’s approval ratings in the wake of his Spring Statement.

The Chancellor’s net favourability rating has nosedived 24 points to -29, according to the latest YouGov poll.

Once a frontrunner to succeed Boris Johnson, Mr Sunak is now less popular than Labour leader Keir Starmer with all voters (-29 vs -25).

Most Brits (57%) now have an unfavourable opinion of Mr Sunak, compared to just 28% who see him in a positive light.

It comes as tax hikes, rising energy bills and sky-high inflation hammer struggling families, with campaigners calling on the Chancellor to do more to help.