LONDON (Reuters) – The wife of British finance minister Rishi Sunak is considered not domiciled for British tax purposes, but pays tax in Britain on all her British income, her spokeswoman said on Wednesday.
Akshata Murthy is the daughter of Narayana Murthy, the billionaire co-founder of IT services company Infosys, and she owns around 0.93% of the company. The tax status means she would not pay tax in Britain on dividends from the Indian company.
The news, which featured prominently in British newspapers on Thursday, comes as the government raises taxes for millions of people. Tulip Siddiq, MP and Treasury spokeswoman for the opposition Labor Party, said Sunak should say whether he had benefited from his wife’s tax status.
Murthy’s spokeswoman said that as an Indian citizen, Murthy was treated under UK law as not domiciled for UK tax purposes, as India does not allow its citizens to hold citizenship of India concurrently. ‘another country.
Sunak, who became finance minister in February 2020 just as the country entered the COVID-19 pandemic, is now facing some of the toughest economic conditions in decades, with soaring inflation and a standard of living that is expected to fall to levels last seen in the 1950s.
Political cartoons about world leaders
To help fund the rebuilding of the country’s national health service and its public finances, he raised the tax take to the highest level since the 1940s.
“Akshata Murty is a citizen of India, the country of her birth and the home of her parents,” the spokeswoman said in a statement. “India does not allow its citizens to simultaneously hold the citizenship of another country.
“She has and will continue to pay UK tax on all her UK income.”
A person familiar with the situation said Sunak declared his wife’s status to the government when he became a minister and the Treasury Department was also notified. The person who asked not to be named due to the sensitivity of the issue added that Murthy pays foreign taxes on his foreign income.
(Reporting by Kate Holton; editing by Richard Pullin)
Copyright 2022 Thomson Reuters.