Last week, it was revealed that Mr Sunak’s wife, Akshata Murthy claims non-domicile status on her tax, allowing her to save millions of pounds in tax on dividends collected from her family’s IT business empire. Ms Murthy receives about £11.5million per year in dividends from her stake in Indian IT services company Infosys. Her non-dom status means she does not have to pay tax on dividends from overseas companies.
A spokeswoman for Ms Murthy said: “Akshata Murthy is a citizen of India, the country of her birth and parents’ home.
“India does not allow its citizens to hold the citizenship of another country simultaneously.
“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.”
But over the weekend, Ms Murthy announced she would give up her right to pay only “international tax” on her foreign income.
She said her tax arrangements were “entirely legal” but added: “It has become clear that many do not feel it is compatible with my husband’s role as Chancellor.”
There was previously speculation that Mr Sunak might be vying for Boris Johnson’s job, as he had consistently high approval ratings and the Chancellor was seen to have distanced himself from Boris Johnson over the partygate scandal.
But a new Opinium poll for the Observer saw his approval ratings plummet to -15, making him only marginally less popular than Prime Minister Boris Johnson.
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According to Conservative Home’s most recent “cabinet league table”, based on a poll of party members in March 2022, Mr Sunak is now one of the least popular members of the cabinet after being ranked just third from the bottom.
This time last year, in March 2021, Mr Sunak was second from the top in the same league table.
Some Conservative MPs have said that the recent tax row has hampered his chances of becoming prime minister, with one senior Tory telling the Indepndent that “his standing has certainly fallen.”
But Home Office Minister Kir Malthouse denied that Mr Sunak’s political career was “toast”, saying: “Both she and Rishi have recognised that situation was not favourable and it was distracting from the overall message.
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“They have now corrected that situation.
“Hopefully we can move on.”
Speaking to Sky News’ Sophy Ridge On Sunday programme, he added: “Rishi Sunak has been a remarkable force for good in this country over the last two years.
“He is a smart, clever, committed politician who came into parliament with me and I have been deeply impressed by him ever since.
“I’m a big fan.”