Prime Minister Rishi Sunak’s latest tax summary reveals he paid £508,308 in UK tax on earnings just exceeding £2.2 million last year.
According to documents released by Downing Street, Sunak also contributed £359,240 in tax on around £1.8 million in capital gains from a US-based investment fund.
This marks the second time Sunak has published details of his earnings since assuming office in No 10 Downing Street in October 2022.
The first publication, in March last year, covered the previous three financial years, including the period before he became Prime Minister.
Sunak’s decision to disclose his tax details aligns with a commitment he made during his Tory leadership campaign in the summer of 2022.
According to his latest tax summary, there has been an increase in both his earnings and the total tax paid compared to the previous year. In the preceding year, he contributed £432,493 in UK tax on total earnings of approximately £1.9 million.
With a professional background in finance before entering politics, Rishi Sunak is widely recognized as one of the wealthiest Members of Parliament.
The issue of Sunak’s wealth has become a focal point for opposition parties, and this trend is expected to gain momentum during an election year.
In a recent critique, Labour leader Sir Keir Starmer pointed out the Prime Minister’s capacity to absorb mortgage increases, highlighting that “most people don’t have that sort of money.”
Responding to the criticism, Sunak countered by accusing the Labour leader of resorting to “the politics of envy.”
Earlier this week, the Labour Party labeled the Prime Minister as “out of touch.” This assessment came after he seemingly engaged in a £1,000 bet during an interview with TV presenter Piers Morgan, concerning his Rwanda policy.
Sunak’s U.S Blind Managed fund
The most recent summary of Mr. Sunak’s income reveals two official sources of earnings, comprising a ministerial salary of £55,358 in addition to his MP’s salary of £84,119.
However, these official salaries pale in comparison to his investment income, which amounted to a substantial £289,422, accompanied by capital gains of just under £1.8 million from a “blind managed” US-based fund.
It is worth noting that this arrangement, designed to entrust the management of assets to advisers and mitigate conflicts of interest, is also utilized by several other government ministers.
Furthermore, the disclosed return indicates that Mr. Sunak earned £3,985 in interest on bank savings, a notable increase from the £293 reported in the previous year.
In a separate disclosure, Chancellor Jeremy Hunt has released his tax summary, indicating he paid £117,418 in UK tax on a total income of £416,605. This income includes £27,370 derived from rental income from a “commercial investment property.”
On the other hand, Mr. Sunak and his wife, Akshata Murty, whose father co-founded Indian IT giant Infosys, possess a combined wealth estimated at around £529 million, as per the 2023 Sunday Times Rich List.
In addition, former lawyer Sir Keir Starmer disclosed his tax summary last year, revealing that he paid £118,580 in UK tax on total earnings of £359,720 for two financial years since assuming the leadership of the Labour Party in 2020.
These earnings included over £21,000 for legal services rendered in 2020, before his tenure as Labour leader, and £85,000 in capital gains in 2022 from the sale of a property he co-owned with his sister.
Labour is expected to release Sir Keir Starmer’s latest tax summary, covering the last financial year, in the coming days.
This move towards transparency echoes former Prime Minister David Cameron, who became the first UK prime minister to publish a summary of his tax returns in 2016. This decision was prompted by revelations about his late father’s offshore fund.
Theresa May also released her tax return, during her campaign for Tory leadership in the same year, but she did not do so during her tenure as prime minister.