The document shows he paid a tax bill of £508,308 in the financial year 2022-23 – around £75,000 more than what he paid in the previous year.
Mr Sunak made nearly £1.8m through capital gains – up from £1.6m in 2021/22 – as well as £293,407 in other interest and dividends.
Image: Rishi Sunak’s tax return
All of the investment income and capital gains came from a US-based investment fund listed as a blind trust, according to the summary.
He also earned £139,477 from his roles as an MP and prime minister.
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Critics pointed out that he paid the same effective tax rate as a teacher despite raking in millions more.
This is because most of his earnings were in the form of capital gains, which is taxed at a lower rate than income.
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Image: Rishi Sunak and his wife have a combined wealth estimated at about £529m. Pic: Reuters
The document shows the Tory leader’s total income was up 13% from the previous year, rising from nearly £2m to £2.2m.
It takes his total earnings over the last four years to about £7m.
He paid an overall tax rate of about 23% of his annual income – with the release of the document sparking calls for tax reform.
Tax expert Dan Neidle said: “What devious planning did he use to pay so little tax? Absolutely none. Most of that £2.3m is in the form of capital gains, and we tax capital gains on shares at only 20%.”
Robert Palmer, executive director at Tax Justice UK, said: “At the moment someone who earns most of their money from their wealth – like the prime ninister – pays a much lower tax rate than someone who relies on going out to work for their living. We need to fix this to make sure that income from wealth is taxed at the same rate as income from work.”
Labour MP Richard Burgon posted on X: “Our tax system is rigged in favour of the super-rich. It’s time to make them pay their fair share!”
Mr Sunak vocally backed the slashing of the top rate of capital gains tax (CGT) from 28% to 20% by the Tory government in 2016.
The top rate of income tax is 45%, and there have long been calls to make the system fairer.
Rather than a full tax return, Number 10 published “a summary” of Mr Sunak’s UK taxable income, capital gains and tax paid over the last tax year as reported to HM Revenue & Customs. It was prepared by accountancy service Evelyn Partners.
A summary of his tax affairs for the year 2021/22 was also published last March, showing the prime minister paid £432,493 in taxes that year.
Why did the prime minister publish his tax returns?
Mr Sunak first said he would publish his tax returns during his unsuccessful campaign to be Tory leader against Liz Truss in the summer of 2022.
The prime minister is thought to be one of the richest MPs in parliament and his personal wealth has long been used by opponents to attack him as being “out of touch”.
Mr Sunak and his wife, Akshata Murty, the daughter of the billionaire co-founder of Indian IT giant Infosys, have a combined wealth estimated at about £529m, according to 2023’s Sunday Times Rich List.
Pressure about their finances started piling on Mr Sunak while he was chancellor, after it emerged Ms Murty had non-dom status – meaning she did not have to pay UK tax on her international income.
Following a significant backlash, Ms Murthy announced she would pay UK tax on all her worldwide wealth to stop the issue from acting as a “distraction for her husband”.
However, the calls for the prime minister to release his tax details then grew louder following the controversy around Nadhim Zahawi, who was sacked as Tory Party chairman inJanuary 2023after he failed to disclose millions of pounds in tax.
Mr Sunak, a former investment banker and hedge fund manager has hit back at critics of his vast wealth, saying he “worked really hard for everything that I’ve got” and that those using it as a “political smear” lacked ambition for the country.
Chancellor Jeremy Hunt, whose tax summary was also published, paid a total of £117,418 in UK tax in 2022/2023.
His total income before tax was £416,605.
Labour leader Sir Keir Starmer is expected to follow Mr Sunak’s example by publishing his tax return.
Health Secretary Wes Streeting has defended “unpopular” policies such as the cut to the winter fuel allowance despite Labour’s poor performance at the local elections.
Mr Streeting denied the government had made any mistakes when asked whether the policy was partly to blame for the party losing 189 council seats less than a year since the General Election.
Since coming into government last July, Labour has enacted a number of policies that were not in its manifesto.
Asked what mistakes his government had made so far that had led to its drubbing at the ballot box, Mr Streeting told Sunday Morning with Trevor Phillips: “Well, we will make plenty of mistakes.”
Pressed again on whether he believed “mistakes” had been made, the health secretary replied: “No. When we made those choices, we knew they would be unpopular. And we knew that they would be opposed.
“The reason we made those choices is because we genuinely believe they’re the right choices to get the country out of the massive hole it was left in. And right across the board. Whether it’s the NHS, whether it’s schools, whether it’s prisons, whether it’s our defence and security, whether it’s crime and policing, there were enormous challenges facing this country when we came in.
“And we’ve had to make big and sometimes unpopular decisions so that we can face those challenges and deal with them. People might thank us if we just kind of go for the easy but we want to make the right choices.”
Some Labour MPs have urged the government to change direction, with one telling Sky News the cut to winter fuel was a “catastrophic error” that must be “remedied” if the party is to see any improvement in public opinion.
Others have warned that in courting Reform voters, the party risks fracturing its coalition of voters on the left who may be tempted by the Liberal Democrats and Green Party.
However, in the aftermath of the local elections, Sir Keir Starmer suggested the poor results meant he needed to go “further and faster” in delivering his existing agenda.
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6:11
Inside Reform’s election success
The real victor to emerge from Thursday’s local elections was Reform UK, which won control of 10 councils and picked up 677 council seats largely at the expense of the Conservatives in the south.
However, Reform also won the Runcorn by-election from Labour by just six votes, as well as control of Doncaster Council from Labour – the only local authority it had control of in this set of elections – in a significant win for Nigel Farage and his party.
The Reform UK leader declared that two-party politics was now “finished” and that his party was now the official “opposition” to Labour.
Asked whether the results meant that Labour would now treat Reform as “your most serious opposition”, Mr Streeting said: ” I certainly do treat them as a serious opposition force.”
“As I say, I don’t know whether it will be Reform or the Conservatives that emerge as the main threat,” he added.
“I don’t have a horse in that race, but like alien versus predator, I don’t really want either one to win.”
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1:50
Reform UK are ‘fighting force’
Tory Party chairman Nigel Huddleston said Reform UK was not just a protest party and that Mr Farage was “a force in British politics”.
He told Trevor Phillips: “But the one thing about Nigel Farage is, and we’re seeing this again and again and again, he is a populist.
“He is increasingly saying everything that anybody wants to hear. He’s trying to be all things to all men.”
“We are establishing ourselves as a credible alternative government based on sound conservative principles and values and our values and our principles, and therefore our policies, will define the future of our party,” he added.
Kemi Badenoch has admitted it is “feasible” that Nigel Farage could become the next prime minister.
The Tory leader told the BBC’s Sunday With Laura Kuenssberg programme Mr Farage’s party was “expressing the feeling of frustration that a lot of people around the country are feeling” – but added it was her job to “come up with answers and solutions”.
Asked if it was feasible that Mr Farage could be the next prime minister, she cited how Australian Prime Minister Anthony Albanese had won re-election this weekend.
“As I said, anything is feasible,” she said. “Anthony Albanese: people were writing him off. He has just won a landslide, but my job is to make sure that he [Farage] does not become prime minister because he does not have the answers to the problems the country is facing.”
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0:54
Could Nigel Farage be prime minister?
Asked what Mr Farage was doing right, Ms Badenoch said: “He is expressing the feeling of frustration that a lot of people around the country are feeling.
“But he also doesn’t have a record in government like the two main parties do. Now he’s going to be running some councils. We’ll see how that goes.”
Mr Farage was the undoubted winner of Thursday’s local elections, in which 23 councils were up for grabs.
His party picked up 677 council seats and took control of 10 councils.
By contrast, the Conservatives lost 677 council seats as well as control of 18 councils in what was their worst local elections performance on record.
Mr Farage said the outcome spelt the end of two-party politics and that his party was now the official “opposition” to Labour – with the Tories having been rendered a “waste of space”.
Ms Badenoch said she believed the vote for Mr Farage on Thursday was partly down to “protest” but added: “That doesn’t mean we sit back. We are going to come out fighting.
“We are going to come out with the policies that people want to see, but what we are not going to do is rush out and tell the public things that are not true just so we can win votes.
“This is not about winning elections; this is about fixing our country. Yes, of course, you need to win elections to do that, but you also need a credible plan.”
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10:39
‘Farage is a force in British politics’
Conservative co-chairman Nigel Huddleston sought to play down the threat from Reform UK, telling Sky News: “When they’re in a position of delivering things, that’s when the shine comes off.”
He told Sunday Morning with Trevor Phillips: “The one thing about Nigel Farage is, and we’re seeing this again and again and again, he is a populist.
“He is increasingly saying everything that anybody wants to hear. He’s trying to be all things to all men.”
“We are establishing ourselves as a credible alternative government based on sound conservative principles and values and our values and our principles, and therefore our policies, will define the future of our party,” he added.
Asked whether the results meant that Labour would now treat Reform as “your most serious opposition”, Health Secretary Wes Streeting told Trevor Phillips: ” I certainly do treat them as a serious opposition force.”
“As I say, I don’t know whether it will be Reform or the Conservatives that emerge as the main threat,” he added.
“I don’t have a horse in that race, but like alien versus predator, I don’t really want either one to win.”
A group of US Senate Democrats known for supporting the crypto industry have said they would oppose a Republican-led stablecoin bill if it moves forward in its current form.
The move threatens to stall legislation that could establish the first US regulatory framework for stablecoins, according to a May 3 report from Politico.
Per the report, nine Senate Democrats said in a joint statement that the bill “still has numerous issues that must be addressed.” They warned they would not support a procedural vote to advance the legislation unless changes are made.
Among the signatories were Senators Ruben Gallego, Mark Warner, Lisa Blunt Rochester and Andy Kim — all of whom had previously backed the bill when it passed through the Senate Banking Committee in March.
The bill, introduced by Senator Bill Hagerty, is formally known as the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act.
The Senate is expected to begin floor consideration of the bill in the coming days, with the first vote potentially taking place next week.
The bill has been championed by the crypto industry as a landmark step toward regulatory clarity. However, the Democrats’ about-face reflects growing unease within the party.
Although revisions were made to the bill after its committee approval to address Democratic concerns, the lawmakers said the changes fell short. They called for stronger safeguards related to Anti-Money Laundering, national security, foreign issuers, and accountability measures for noncompliant actors.
The statement was also signed by Senators Raphael Warnock, Catherine Cortez Masto, Ben Ray Luján, John Hickenlooper and Adam Schiff.
Senator Kirsten Gillibrand and Senator Angela Alsobrooks were absent from the list, who co-sponsored the bill alongside Hagerty.
Despite their objections, the Democratic senators emphasized their commitment to shaping responsible crypto regulation. They reportedly said they “are eager to continue working with our colleagues to address these issues.”
On April 27, Caitlin Long, founder and CEO of Custodia Bank, criticized the US Federal Reserve for quietly maintaining a key anti-crypto policy that favors big-bank-issued stablecoins, despite relaxing crypto partnership rules for banks.
The guidance, according to Long, blocks banks from engaging directly with crypto assets and prohibits them from issuing stablecoins on permissionless blockchains.
However, Long noted that once a federal stablecoin bill becomes law, it could override the Fed’s stance. “Congress should hurry up,” she urged.