Sage Sunak’s wife has announced that she will pay UK taxes on all her foreign income and says she does not want to be “distracted” from her husband’s political career.
The chancellor, who has been fighting for his political career since leaving this week, has admitted his wife, Akshata Murthy, has a non-resident status, meaning he does not pay UK taxes on foreign earnings.
Murthy owns 90 690 million in Indian technology company Infosys, founded by his father, and received a dividend of £ 11.6 million in the last tax year. Experts say the measure means he has avoided up to 20 20 million in UK taxes.
Sunak has been criticized by critics for insulting his wife, claiming that as a private citizen, she is entitled to privacy. He argues that he pays all taxes due on his global income.
However, in a statement tonight, Murthy acknowledged that her tax status was not “consistent” with her husband’s role as chancellor and said she would no longer claim exemptions on her foreign earnings. He said he was proud that his daughters were British when he was an Indian citizen.
“I understand and appreciate the British sense of fairness and I do not want my tax status to be confusing to my husband or affect my family,” she said.
He has announced that he will now pay UK taxes on all his global income, including the last financial year. The tax will apply to dividends and any capital gains from his shareholding in his father’s company. However, it will not be applicable for the previous year.
She said: “So far, I have tried to keep my professional life and my husband’s political career completely separate.
“Since Rishi came to Parliament, he has not involved himself in my business and I have left politics to him.
“When I met him, we were 24-year-old business school students, living in another country and had no idea where life would take us. The sage has always respected the fact that I am Indian and proud of my country as he is his.
“He never asked me to give up my Indian citizenship, my relationship with India or my business affairs, although such a move would make things easier for him politically. He knows that my long-term shareholding in Infosys is not only a financial investment but also a testament to my father’s work, for which I am incredibly proud. “
He said he would retain his Indian citizenship and Indian residency for tax purposes, though he would not claim the remittance he was entitled to. He said: “My decision to pay UK tax on all my global income will not change the fact that India remains my country of birth, citizenship, parents’ home and residence. But I also love the UK. In my time here I have invested in British businesses and supported British causes. My daughters are British. They are growing up in the UK. I am very proud to be here. “