Sunak paid half a million pounds in tax last year, according to his tax returns
Rishi Sunak has published his personal tax return, showing he paid more than £500,000 in UK tax last year, as his total income rose to £2.2m.
The summary of the prime minister’s financial affairs was made public on Friday afternoon as parliament was in recess.
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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.
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.
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.
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”.
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Who is Rishi Sunak’s wife Akshata Murty – and why are her family so wealthy?
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 in January 2023 after 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.
Politics
Row over how many farms will be affected by inheritance tax policy – as PM doubles down ahead of farmers protest
Sir Keir Starmer has insisted the “vast majority of farmers” will not be affected by changes to Inheritance Tax (IHT) ahead of a protest outside parliament on Tuesday.
It follows Chancellor Rachel Reeves announcing a 20% inheritance tax that will apply to farms worth more than £1m from April 2026, where they were previously exempt.
But the prime minister looked to quell fears as he resisted calls to change course.
Speaking from the G20 summit in Brazil, he said: “If you take a typical case of a couple wanting to pass a family farm down to one of their children, which would be a very typical example, with all of the thresholds in place, that’s £3m before any inheritance tax is paid.”
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The comments come as thousands of farmers, including celebrity farmer Jeremy Clarkson, are due to descend on Whitehall on Tuesday to protest the change.
And 1,800 more will take part in a “mass lobby” where members of the National Farmers’ Union (NFU) will meet their MPs in parliament to urge them to ask Ms Reeves to reconsider the policy.
Speaking to broadcasters, Sir Keir insisted the government is supportive of farmers, pointing to a £5bn investment announced for them in the budget.
He said: “I’m confident that the vast majority of farms and farmers will not be affected at all by that aspect of the budget.
“They will be affected by the £5bn that we’re putting into farming. And I’m very happy to work with farmers on that.”
Sir Keir’s spokesman made a similar argument earlier on Monday, saying the government expects 73% of farms to not be affected by the change.
Environment, Farming and Rural Affairs Secretary Steve Reed said only about 500 out of the UK’s 209,000 farms would be affected, according to Treasury calculations.
However, that number has been questioned by several farming groups and the Conservatives.
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The NFU said the real number is about two-thirds, with its president Tom Bradshaw calling the government’s figures “misleading” and accusing it of not understanding the sector.
The Country Land and Business Association (CLA) said the policy could affect 70,000 farms.
Conservative shadow farming minister Robbie Moore accused the government last week of “regurgitating” figures that represent “past claimants of agricultural property relief, not combined with business property relief” because he said the Treasury does not have that data.
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Agricultural property relief (APR) currently provides farmers 100% relief from paying inheritance tax on agricultural land or pasture used for rearing livestock or fish, and can include woodland and buildings, such as farmhouses, if they are necessary for that land to function.
Farmers can also claim business property relief (BPR), providing 50% or 100% relief on assets used by a trading business, which for farmers could include land, buildings, plant or machinery used by the business, farm shops and holiday cottages.
APR and BPR can often apply to the same asset, especially farmed land, but APR should be the priority, however BPR can be claimed in addition if APR does not cover the full value (e.g. if the land has development value above its agricultural value).
APR and BPR can apply to farmland, which the Conservatives say has been overlooked by the Treasury in compiling its impact figures. File pic: iStock
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Mr Moore said the Department for the Environment, Farming and Rural Affairs (DEFRA) and the Treasury have disagreed on how many farms will be impacted “by as much as 40%” due to the lack of data on farmers using BPR.
Lib Dem MP Tim Farron said last week1,400 farmers in Cumbria, where he is an MP, will be affected and will not be able to afford to pay the tax as many are on less than the minimum wage despite being asset rich.
Politics
Cabinet split over assisted dying as Education Secretary Bridget Phillipson latest to reveal she will vote against bill
A split is emerging in the cabinet, with Education Secretary Bridget Phillipson revealing she will join several of her colleagues and vote against the bill to legalise assisted dying.
Ms Phillipson told Sky News she will vote against the proposed legislation at the end of this month, which would give terminally ill people with six months to live the option to end their lives.
She voted against assisted dying in 2015 and said: “I haven’t changed my mind.
“I continue to think about this deeply. But my position hasn’t changed since 2015.”
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MPs will be given a free vote on the bill, so they will not be told how to vote by their party.
The topic has seen a split in the cabinet – however, Prime Minister Sir Keir Starmer has yet to reveal how he will vote on 29 November.
Ms Phillipson joins some other big names who have publicly said they are voting against the bill
These include Deputy PM Angela Rayner, Health Secretary Wes Streeting, Justice Secretary Shabana Mahmood and Business Secretary Jonathan Reynolds.
Border security minister Angela Eagle is also voting against the bill.
Senior cabinet members voting in favour of assisted dying include Energy Secretary Ed Miliband, Science Secretary Peter Kyle, Work and Pensions Secretary Liz Kendall, Culture Secretary Lisa Nandy, Northern Ireland Secretary Hilary Benn, Transport Secretary Louise Haigh and Welsh Secretary Jo Stevens.
The split over the issue is said to be causing friction within government, with Sir Keir rebuking the health secretary for repeatedly saying he is against the bill and for ordering officials to review the costs of implementing any changes in the law.
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Health Secretary Wes Streeting has called for a cost report into assisted dying. Pic: PA
Sky News’ deputy political editor Sam Coates has been told Morgan McSweeney, the PM’s chief of staff, is concerned about the politics of the bill passing.
He is understood to be worried the issue will dominate the agenda next year and, while he is not taking a view on the bill, he can see it taking over the national conversation and distracting from core government priorities like the economy and borders.
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Details of the bill were published last week and include people wanting to end their life having to self-administer the medicine.
It would only be allowed for terminally ill people who have been given six months to live.
Two independent doctors would have to confirm a patient is eligible for assisted dying and a High Court judge would have to give their approval before it could go ahead.
Politics
Lord Patten calls on Sir Keir Starmer to condemn ‘sham’ sentencing of 45 Hong Kong pro-democracy campaigners
Lord Patten, the last governor of Hong Kong, has called on the British government to condemn the “sham” sentencing of 45 Hong Kong politicians and activists as Sir Keir Starmer holds talks with the Chinese president.
The former opposition pro-democracy politicians, social workers, activists and academics are due to be sentenced on Tuesday for conspiring to subvert power through an unofficial “primary” election four years ago.
Members of the public have been queuing to attend their sentencing, which will see them facing up to life in jail.
It is Hong Kong’s largest and longest-running prosecution under the national security law, which was enforced by Beijing and saw months of mass protests, police violence and arrests in 2020 and 2021.
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Called the “Hong Kong 47” after 47 were charged in January 2021 with conspiracy to commit subversion, 45 of them are set to be sentenced this week after two were acquitted in May this year.
Lord Patten, a patron of British NGO Hong Kong Watch, said the sentences tomorrow will be a “sham” and he called on the prime minister to speak out against them.
Sir Keir met Chinese President Xi Jinping at the G20 summit in Rio on Monday where he told him a “strong UK-China relationship is important for both of our countries”.
The UK PM told reporters on Sunday he intended to pursue a “serious, pragmatic” relationship with Beijing.
Sir Keir Starmer during a meeting with Xi Jinping in Rio. Pic: PA
Lord Patten said: “The sentencing of 45 of the 47 Hong Kong democrats is not only an affront to the people of Hong Kong, but those who value rights and freedoms around the world.
“These brave individuals were an integral part of defining the pro-democracy movement in Hong Kong, and were peacefully supported by thousands through votes.
“I absolutely condemn these sham sentences, which resulted from a non-jury trial and point to the destruction of freedoms of assembly, expression, and the press in Hong Kong.
“The UK government must not allow the results of this case to go unnoticed or uncondemned.”
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Sir Keir’s meeting with President Xi in Rio is the first of any prime minister in more than six years.
The PM and his foreign secretary, David Lammy, have been critical of China in the past, particularly regarding allegations of human rights abuses against Uyghurs in Xinjiang.
Relations between the UK and China have become frosty over the last decade as the Conservative government spoke out against human rights abuses and concerns grew over national security risks from Chinese investment.
Sir Keir appears to be prioritising trade, with China being Britain’s sixth largest trading partner, accounting for 5% of goods and services trade worth £86.5bn.
The PM’s spokesman said Sir Keir told Mr Xi he wants to “engage honestly and frankly on those areas where we have different perspectives, including on Hong Kong, human rights and Russia’s war in Ukraine”.
Student protest leader turned politician Joshua Wong is one of the Hong Kong 47. Pic: Reuters
Hong Kong 47 in jail for nearly four years
Most of the Hong Kong 47 have been in custody since they were arrested in early 2021.
One of the most famous members of the group is Nobel Peace Prize nominee Joshua Wong, a student protest leader who became leader of the now-disbanded political group Demosisto.
Sixteen of the group pleaded not guilty, with 14 of them convicted after a 118-day trial without a jury. Those found guilty will be sentenced along with 31 who pleaded guilty.
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They were arrested after organising a primary election in July 2020 aiming to help pro-democracy politicians seize a majority in the 2021 Legislative Council elections.
Prosecutors said had they won a majority in the chamber, the democrats were planning to “indiscriminately” veto bills, including the annual budget, which would force the chief executive’s resignation and a government shutdown.
National security judges ruled the move would have plunged Hong Kong into a “constitutional crisis”.
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