Rishi Sunak paid effective tax rate of 23% on £2.2m income last year | Rishi Sunak

Rishi Sunak paid more than half a million pounds in tax in 2023 after making a £1.8 million profit on his stake in a US investment fund, according to a summary of his tax affairs.

The Prime Minister released the document on Friday, showing he paid a tax bill of £508,308 in the 2022-23 financial year on overall profits and gains of £2.23 million.

This means he paid an effective tax rate of 23% in the UK – well below the top rate of 45% – because some income was taxed at source in the US and the tax rate for most -values ​​is less than 20%.

Sunak did increase income taxes due to the freezing of tax thresholds and the temporary increase in national insurance, but overall rates on capital gains remained unchanged during his tenure as chancellor and then again. Prime Minister.

The Trades Union Congress (TUC) tweeted after publication: “It really remains a mystery why Rishi Sunak increased income tax but not capital gains tax. »

His salary of £139,477 as Prime Minister was only 7% of his total income that year. As well as the £1.8m win, he received a dividend of £276,218 and £17,189 in interest from his savings and an investment fund in the US.

The tax return will raise questions about why Sunak appears to hold much of his wealth in the US rather than the UK.

According to the summary provided by Sunak's accountants, these investments were held under a “blind management arrangement”, which meant he did not receive the gains as income but still had to pay tax on them .

Jeremy Hunt, the chancellor, published his tax return at the same time. It showed he had paid tax of £117,418 on income of £208,547 plus a capital gain of £208,058.

Of his income, Hunt earned £27,370 from a rental property and £35,997 in dividend income.

Sunak published his 2023 tax return for the first time, showing he had earned almost £5 million in the previous three years, mainly from income from his US investment funds.

Sunak's personal wealth and ties to the United States are a sensitive issue for the Prime Minister. A former Goldman Sachs banker and hedge fund manager, he joined one of India's richest families by marrying Akshata Murty, the daughter of Narayana, the billionaire founder of Infosys.

Sunak came under fire in April 2022 after it emerged he held a US green card while in office – meaning he declared himself a “permanent resident of the US” for tax purposes for 19 months while chancellor and for six years as an MP. Murty was also criticized when it emerged that she was not a dom, and she subsequently pledged to pay taxes on all worldwide income in the future.

The Prime Minister and his family own several properties, including the house in his constituency of Richmond, North Yorkshire, a Grade II listed mansion with a private lake and a new heated swimming pool. The demand for energy in the basin will be such that Sunak will have to pay to upgrade the local electricity network.

Robert Palmer, executive director of Tax Justice UK, said: “People will be shocked to learn that the Prime Minister has such a low tax rate despite millions of dollars. But it is a feature of our broken tax system. Currently, someone who makes most of their money from their fortune – like the Prime Minister – pays a much lower tax rate than someone who relies on their job for a living. We need to address this problem to ensure that wealth income is taxed at the same rate as earned income.”

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