Rishi Sunak’s wife claims non-domicile status

theguardian.com:

Rishi Sunak’s multi-millionaire wife claims non-domicile status, it has emerged, which allows her to save millions of pounds in tax on dividends collected from her family’s IT business empire.

Akshata Murthy, who receives about £11.5m in annual dividends from her stake in the Indian IT services company Infosys, declares non-dom status, a scheme that allows people to avoid tax on foreign earnings.

Murthy, the daughter of Infosys’s billionaire founder, owns a 0.93% stake in the tech firm worth approximately £690m. The company’s most recent accounts suggest that Murthy’s stake would have yielded her £11.6m in dividend payments in the last tax year.

Under UK tax laws, Murthy’s status as a non-dom would mean she would not have had to pay tax on the dividend payment from overseas companies. Infosys is headquartered in Bengaluru, India, and listed on the Indian and New York stock exchange. By contrast, UK resident taxpayers pay a 38.1% tax on dividend payouts.

A spokeswoman for 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.”

The Treasury declined to comment.

It comes a day after it was revealed that Sunak and Murthy donated more than £100,000 to the chancellor’s old private school, Winchester College.

It is understood that Sunak, the chancellor, declared his wife’s tax status to the Cabinet Office when he became a minister in 2018, and he had also made the Treasury “aware, so as to manage any potential conflicts”.

Tulip Siddiq, the shadow