Sajid Javid, the well being secretary, has been drawn into the “non-dom” controversy after admitting he held the standing for six years whereas a banker, permitting him to legally keep away from tax on abroad earnings.
The senior cupboard minister, a former chancellor, gave a press release to the Sunday Times saying he had held non-dom standing, regarded as on the grounds that his father was born in Pakistan.
He additionally admitted to holding wealth in an offshore belief till he grew to become a minister in 2012, dissolving it and paying 50% tax on the wealth he introduced into the UK.
“I have been domiciled in the UK for tax purposes throughout my entire public life,” he stated. “Given heightened public interest in these issues, I want to be open about my past tax statuses. My career before politics was in international finance. For almost two decades I constantly travelled around the world for work.”
Before he grew to become an MP in 2010, Javid stated he had spent some years as a non-dom, giving this up in 2009.
“For some of those years I was non-domiciled for tax purposes, but I paid all UK taxes due on my income and have always done so,” he stated.
“In 2006 I moved to Singapore with my family and was therefore no longer a UK tax resident. In 2009, upon my return to the UK, I became tax resident in the UK again and also proactively chose to give up my non-domiciled status by making the UK my ‘domicile of choice’.”
He added: “Prior to returning to the UK and entering public life, some of my financial investments were based in an offshore trust. While this was an entirely legitimate arrangement, on becoming a minister in 2012 I decided to voluntarily collapse that trust, repatriate all assets to the UK and pay 50% income tax on those assets.
“This approach deliberately incurred the heaviest possible tax burden, and offset any accrued benefits from the previous trust arrangement, but I believed it was the right thing to do.”
As chancellor earlier than Rishi Sunak, Javid had boasted the Conservatives had launched greater than 100 measures to “tackle aggressive tax avoidance and evasion” with a view to make the tax system “simpler and, most importantly, fairer”.