Becca Monaghan
Apr 09, 2022
Independent TV
Chancellor Rishi Sunak and his wife Akshata have found themselves in the firing line of Twitter jokes, after claims his millionaire wife has declared non-domicile status in order to save on her tax bill.
While the UK are currently struggling with the cost of living crisis and are required to pay tax on all of their income, Akshata Murthy's family business is estimated to be worth around £3.5bn.
Two people familiar with her financial agreements suggested the valuable status was used even after her husband was setting taxes for the UK in 2020.
A 'non-dom' status can save people from paying UK tax on income from dividends from foreign investments, rental payments on property overseas or bank interest. This means Murthy could have potentially saved millions of pounds in foreign earnings over the years.
It also allows individuals to avoid paying UK inheritance tax. However, the decision to pay less tax through the status is optional.
Sign up to our free Indy100 weekly newsletter
Social media was initially flooded with comments disgusted by the ordeal. Meanwhile, others came equipped with their best jokes, hilarious memes and roasts of the couple.
Rishi Sunak's billionaire wife filing her taxespic.twitter.com/Oq0Fui13Zj— SHANE REACTION (@SHANE REACTION) 1649332902
Rishi Sunak\u2019s position seems to be that it\u2019s entirely a family matter that his wife is using tax loopholes he has failed to close— James Felton (@James Felton) 1649327093
As the finances of Rishi Sunak\u2019s wife come under intense media scrutiny, Boris Johnson says if everyone could keep talking about it until about January that\u2019d be great.— Have I Got News For You (@Have I Got News For You) 1649336408
Next time I bump into Rishi Sunak\u2019s wife I\u2019ll have to ask her whether she\u2019s the one who lives next door to me or the one who lives in India for tax purposes.— Parody Boris (@Parody Boris) 1649324517
I was initially surprised upon reading that Rishi Sunak\u2019s wife is a non-dom because I certainly didn\u2019t have her husband down as a dom.— Lillian Crawford (@Lillian Crawford) 1649408240
Rishi Sunak and his wife, Akshata after being asked to prove her tax paymentspic.twitter.com/iZPbSrhAJr— Bally Singh (@Bally Singh) 1649410275
Rishi Sunak: "I would never dream of giving up my British citizenship"\n\nAlso Rishi Sunak: "for tax purposes I'm an American"pic.twitter.com/chry2RpJFG— Adam Smith (@Adam Smith) 1649407914
tory defense of rishi sunak going strongpic.twitter.com/Z0KlZoqTjJ— stephen (@stephen) 1649336157
Rishi Sunak says, "We can't help everyone."\n\nThey're far too busy helping themselves.— Jon Jones (@Jon Jones) 1649336167
Rishi Sunak\u2019s political stock is plummeting almost as fast as living standards.— George Eaton (@George Eaton) 1649356054
Last chance to buy the current edition of Private Eye this weekend - the cover still seems fairly, er, topical!pic.twitter.com/OlbGXbW2Ax— Private Eye Magazine (@Private Eye Magazine) 1649412121
pic.twitter.com/niqjbWmL1s— Martin :;ewis (@Martin :;ewis) 1649187785
Rishi only has one card left to play...he must bring out the 5'6 defence— hk (@hk) 1649443251
tomorrow, it will emerge that Rishi Sunak holds the rank of colonel in the French army— Hugh Brechin (@Hugh Brechin) 1649436590
"Take my wife's name out of your HMRC database."— THE SECRET TORY \ud83d\uddfd (@THE SECRET TORY \ud83d\uddfd) 1649428651
The Treasury declined to comment. A representative for Sunak did not respond to multiple requests for comment.
A spokesperson for Murthy claimed that she had to use non-dom status because of her Indian citizenship.
They told The Independent: "Akshata Murty is a citizen of India, the country of her birth and parent's home.
"India does not allow its citizens to hold the citizenship of another country simultaneously. So, according to British law, Ms Murty 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 has since been reported that Sunak and his wife legally declared to be "permanent US residents" while he was chancellor of the UK. Sky News claimed the couple held US "green cards" which permitted them residence in the states until more than a year into his role.
Murthy has since announced in a u-turn that she will now pay UK tax on her overseas income following the pressure placed on them.
Sunak, who has been a member of parliament since 2015, currently resides in the flat above No 10 Downing Street with his wife and two children.
The Treasury has not yet responded with further comment.
Have your say in our news democracy. Click the upvote icon at the top of the page to help raise this article through the indy100 rankings.
Top 100
The Conversation (0)