What do we know about Conservative Party chairman Nadhim Zahawi’s tax affairs?

Published

3 years ago

January 21, 2023

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From an Iraqi-refugee who spoke no English to a multi-millionaire businessman and cabinet minister, Nadhim Zahawi’s story is one of the most compelling in Westminster.

But questions about his financial affairs are now front and centre, having first gained prominence during the Stratford-on-Avon MP’s short-lived campaign to become prime minister last summer.

The allegations centre on his links to a Gibraltar-based trust ‘Balshore Investments Limited’, of which his father Hareth Zahawi is a director.

When Nadhim Zahawi co-founded the polling firm YouGov in May 2000, the trust was allocated shares in the company equalling the number given to the other co-founder Stephan Shakespeare.

Asked about this by Kay Burley last year, the then chancellor said neither he nor his wife benefit from the Gibraltar trust and denied it was used to avoid tax, saying it was simply because his father “lived abroad”.

The cabinet minister has also suggested the trust held the shares because his father was involved in setting up the company, had put money into it and had provided guidance.

Those working at YouGov at the time said Hareth Zahawi was helpful, albeit in an informal way, while others at the firm said he was not involved beyond being a shareholder.

Evidence from 2005 also appears to show – at that point, before he became an MP – Nadhim Zahawi was benefitting from this offshore trust.

A financial document published by YouGov sets out that a dividend payment that was due to go to Balshore instead was used to pay off loans owed by Mr Zahawi.

Potential tax saving uncovered

Much of this detail was first uncovered by Dan Neidle – a lawyer who used to work for a top corporate and now runs a not-for-profit focussed on tax policy.

Tory sources have briefed that Mr Neidle – who is a Labour member – is a “Labour activist” and the allegations are merely taken from his “blog”.

This comes after lawyers acting for Mr Zahawi sent Mr Neidle a series of letters last year threatening legal action if he continued to publish analysis of the Tory MP’s financial affairs.

After digging through pages of documents, Mr Neidle had suggested there would have been a potential tax saving of several million pounds when Balshore sold its YouGov shares.

That’s because they were held in an offshore trust rather than by Mr Zahawi directly, and hence not eligible for capital gains tax.

It’s this figure that is at the centre of the repayment to HMRC.

On Friday, the Guardian newspaper suggested Mr Zahawi reached a settlement with the exchequer that reflected the fact he should have paid tax on the sale of these shares at the time.

Nadhim Zahawi’s statement in full

“As a senior politician I know that scrutiny and propriety are important parts of public life. Twenty-two years ago I co-founded a company called YouGov. I’m incredibly proud of what we achieved. It is an amazing business that has employed thousands of people and provides a world-beating service.

“When we set it up, I didn’t have the money or the expertise to go it alone. So I asked my father to help. In the process, he took founder shares in the business in exchange for some capital and his invaluable guidance. Twenty-one years later, when I was being appointed chancellor of the exchequer, questions were being raised about my tax affairs. I discussed this with the Cabinet Office at the time.

“Following discussions with HMRC, they agreed that my father was entitled to founder shares in YouGov, though they disagreed about the exact allocation. They concluded that this was a ‘careless and not deliberate’ error.

“So that I could focus on my life as a public servant, I chose to settle the matter and pay what they said was due, which was the right thing to do.

“Additionally, HMRC agreed with my accountants that I have never set up an offshore structure, including Balshore Investments, and that I am not the beneficiary of Balshore Investments. This matter was resolved prior to my appointments as chancellor of the duchy of Lancaster and subsequently chairman of the party I love so much. When I was appointed by the prime minister, all my tax affairs were up to date.”

Tax affairs up to date

Mr Zahawi has now confirmed that tax was repaid saying that HMRC had concluded his father was not entitled to the share allocation handed to him when YouGov was created.

The Tory chairman said this was a “careless and not a deliberate error” and didn’t confirm if any penalty was also levied.

He also re-stated that he was not a beneficiary of Balshore Investments and had never set up an offshore structure.

However, this intervention clashes somewhat with previous assertions that his tax affairs “were and are fully up to date”.

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It also looks somewhat awkward given his attempts to silence those looking into his tax affairs and his statement to Sky News last year that people were trying to “smear” him over his business dealings.

There are also still unanswered questions, including the pointed one of whether someone who was chancellor a matter of months ago was issued with a penalty by HMRC for failing to pay the right amount of tax.

World

Israel calls up thousands of reservists as it prepares to launch new Gaza offensive

Published

5 hours ago

August 20, 2025

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Israel calls up thousands of reservists as it prepares to launch new Gaza offensive

Israel will call up 60,000 reservists as it prepares to launch an expanded military operation in Gaza City.

The military said the country’s defence minister Israel Katz has approved plans to begin a new phase of operations in some of the most densely populated areas of the Gaza Strip.

Israeli forces will operate in areas of Gaza City where they have not yet operated and where it believes Hamas is still active, a military official said.

The city is the main military and governing stronghold of Hamas and Israeli troops will target the group’s vast underground network, the official added.

Although Israel has targeted and killed much of Hamas’ senior leadership, parts of the group are actively regrouping and carrying out attacks, including launching rockets towards Israel, the official said.

It remains unclear when the operation will begin, but it could be a matter of days.

The official said 60,000 reservists will be called up in the coming month and the service of an additional 20,000 reservists currently serving will be lengthened.

Israeli Prime Minister Benjamin Netanyahu has said the objectives of the war are to secure the release of the remaining hostages and destroy Hamas.

International criticism of Israel increased after the planned offensive was announced earlier this month amid fears of another mass displacement of Palestinians.

The families of the hostages and former army and intelligence chiefs oppose an expanded operation in Gaza City, with most of the families of hostages wanting an immediate ceasefire.

They worry an expanded assault could threaten prospects of bringing the 50 remaining hostages home. Israel believes 20 of those are still alive.

The war began when Hamas-led militants attacked Israel on 7 October 2023, killing some 1,200 people and abducting 251.

Many of the hostages have been released in ceasefires and other deals, with Hamas saying it will only free the remainder in exchange of a lasting ceasefire and Israeli withdrawal.

More than 62,000 people have been killed during Israel’s 22-month counteroffensive, according to Gaza’s Hamas-run health ministry, which does not differentiate between civilians and combatants in its count, but says women and children make up around half of those killed.

Earlier this week, the ministry said 154 adults had died of malnutrition-related causes since the ministry began counting such deaths in late June, and 112 children have died of malnutrition-related causes since the war began.

World

Tents abandoned as Palestinians flee Israeli advance into Gaza City

Published

8 hours ago

August 20, 2025

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Tents abandoned as Palestinians flee Israeli advance into Gaza City

Thousands have fled parts of Gaza City in recent days amid airstrikes and advancing Israeli troops, new satellite imagery shows.

Israel’s advance comes as it prepares to mount a full-scale invasion of the city, where the UN says around one million Palestinians are sheltering.

Satellite imagery shows that entire tent camps in southeast Gaza City were emptied between 9 and 17 August as families fled the renewed attacks.

The video below shows the moment of an airstrike in southeastern Gaza City on 13 August. Sky News geolocated the footage to a building less than 200 metres from a major tent camp.

Another video, taken on 15 August, shows a strike on a building right next to the camp.

By the following day, almost all the camp’s residents had fled, along with people sheltering at 30 other locations in the area.

Fresh vehicle tracks in the area indicate extensive troop movements on the ground.

The satellite image below, taken on 17 August, shows at least nine military vehicles in the streets surrounding one former tent camp.

Sky News counted 58 military vehicles in the area on 17 August, including 17 bulldozers.

The image below shows four IDF vehicles, including a bulldozer, parked next to the remains of one tent camp. Several nearby buildings had been levelled in the days beforehand.

Between 9 and 17 August, at least 132 buildings were destroyed in less than one square kilometre of the city.

It’s unclear how much of the destruction was carried out by IDF bulldozers and how much was a result of airstrikes.

On Monday, eyewitnesses reported that Israeli tanks had made further advances into eastern Gaza City.

The advances came as Hamas said it had approved a ceasefire deal presented by mediators Egypt and Qatar. Israel has yet to respond to the proposal.

Earlier this month, Israeli Prime Minister Benjamin Netanyahu instructed his country’s military to prepare for a full-scale invasion and occupation of the city in order to “free Gaza from Hamas”.

The UN has said that the invasion risks “catastrophic consequences” for the estimated one million Palestinians sheltering in the city, while UK Prime Minister Sir Keir Starmer said the plan would “only bring more bloodshed”.

The Data and Forensics team is a multi-skilled unit dedicated to providing transparent journalism from Sky News. We gather, analyse and visualise data to tell data-driven stories. We combine traditional reporting skills with advanced analysis of satellite images, social media and other open source information. Through multimedia storytelling we aim to better explain the world while also showing how our journalism is done.

World

Investigation launched into ‘horrifying’ death of French online streamer

Published

8 hours ago

August 20, 2025

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Investigation launched into 'horrifying' death of French online streamer

An investigation has been launched into the death of an internet streamer who was known for taking part in extreme online challenges.

Raphael Graven, who went by Jean Pormanove, was found dead in Contes, near Nice, on Sunday night.

Viewers of the Frenchman’s last live stream on the Twitch-like platform Kick had reportedly become concerned about him lying lifeless on a mattress, unresponsive to their comments.

According to France24, prosecutors said the 46-year-old had been in accommodation rented for the purpose of broadcasting internet live streams. The broadcast had reportedly been running for 10 days.

French newspaper Le Monde said Graven was known for participating in videos in which he suffered violence and humiliation, alongside two colleagues. One man was seen throwing a water bottle at him as he laid on the mattress.

France’s digital technology minister, Clara Chappaz, said he had been “humiliated and abused for months”.

“A judicial investigation is underway,” she said.

“Holding online platforms responsible for the dissemination of illegal content is not an option: it is the law.

“This type of failure can lead to the worst and has no place in France, Europe, or anywhere else.”

What is Kick?

Streaming platform Kick has been making waves since it was launched in early 2023.

Built as a competitor to the Amazon-owned platform Twitch, it hosts livestreaming for everyone from gamers to influencers to gamblers.

Although Kick’s ownership isn’t fully public, it is backed by some of the founders of the online casino Stake.com and streamers can currently make more on Kick than on other platforms.

While Twitch lets creators keep 50% of their profit, and YouTube lets creators keep 70%, Kick lets creators keep 95% of their earnings, according to Internet Matters.

Those potential earnings have drawn a number of streamers – and their fans – over to the newer platform.

Kick currently boasts around 57 million users worldwide, according to data reported by Digiday in April.

Although its community guidelines have been recently updated, Kick is seen as having a more relaxed approach to moderation.

This approach has led to some influencers who are banned on other platforms making their way over to Kick.

Sarah El Hairy, France’s high commissioner for children, described his death as “horrifying”.

“Platforms have an immense responsibility to regulate online content so that our children are not exposed to violent content,” she said. “I urge parents to be extremely vigilant.”

Graven had more than one million followers across social media.

He was particularly popular on Kick, which was founded in 2022 as a competitor to Amazon-owned Twitch. It’s known for having looser moderation, and offers creators a higher share of revenue.

A spokesperson for Kick told Sky News: “We are deeply saddened by the loss of Jean Pormanove and extend our condolences to his family, friends, and community.

“We are urgently reviewing the circumstances and engaging with relevant stakeholders to investigate the situation.

“Kick’s community guidelines are designed to protect creators, and we remain committed to upholding these standards across our platform.”