What Is Non-Domiciled? Rishi Sunak’s Wife U.K. Tax Status Explained
Chancellor of the Exchequer Rishi Sunak and wife, Akshata Murthy, at a reception on Feb. 9.
Photographer: Max Mumby/Indigo/Getty Images
Prime Minister Boris Johnson’s government has been put on the defensive by the revelation that Chancellor of the Exchequer Rishi Sunak’s wife, Akshata Murthy, holds non-domiciled status in the U.K. That means she doesn’t pay British taxes on her foreign earnings, potentially saving her millions of pounds.
It’s a designation that lets U.K. residents who have their permanent home -- or domicile -- outside the country avoid having to pay regular U.K. taxes on the income they earn abroad. It’s not granted automatically; a resident needs to apply. The status also carries the implication that their stay in Britain is not permanent.