Rishi Sunak paid over £400k in UK tax in 2021/22

Rishi Sunak paid over £400k in UK tax in 2021/22

Mar 29, 2023

The prime minister, Rishi Sunak has released a breakdown of his taxes showing that he paid a total of £432,493 in UK tax in 2021/22, with declared earnings reaching £1.9m

In total, the prime minister paid £325,826 in capital gains tax and £120,604 in UK income tax, paying a total of £432,493 in the 2021/22 tax year.

In the last financial year alone, Sunak earned £1,970,992 in income and capital gains, according to the records released by his accountants, Evelyn Partners.

Of the £1.9m earned, £156,163 came from his parliamentary salary, £173,398 from investment and savings income and £1.6m from capital gains.

Capital gains are taxed at 20% in the UK, while the highest income tax band is 45% on earnings over £150,000.

The records show the total UK tax he paid in 2020/21 was £393,217 on earnings of £1,777,581. Of this, £156,164 was earned in salary, £182,186 in investment and savings income, and £1.4m in capital gains.

In 2019/20, when he was appointed Chancellor, Sunak earned £98,624 in salary, £237,340 in investment and savings income and £679,946 in capital gains. He paid £227,350 on total earnings of £1,108,389.

Across the three years, the prime minister earned a total of £4.76m and paid a total of £1.05m in tax – an overall effective tax rate of 22%.

Sunak paid a further $51,648 (£42,036) in US taxes over the past three tax years as the US charges non-residents for tax due on dividends.

Rishi Sunak said: ‘I published my tax returns in the interests of transparency, as I said I would, and I’m glad to have done that. I think ultimately what people are interested in is what I’m going to do for them.’

The record comes after Sunak first said he would release his returns during last summer’s Conservative party leadership contest and follows scrutiny over his wife, Akshata Murty’s non-dom status – meaning she did not pay UK tax on her overseas earnings as she paid the annual non-dom charge of £30,000.

Additional pressure grew only louder after Nadhim Zahawi was sacked as Tory Party chairman in January after an ethics inquiry into the handling of his tax affairs found a ‘serious breach’ of the ministerial code.

Christine Jardine MP, Lib Dem Cabinet Office spokesperson, said: ‘After months of promising to release his tax returns, I don’t understand why Rishi Sunak has snuck them out whilst the world is distracted with Boris Johnson’s Partygate grilling. People will be much more concerned about the staggering tax hikes Rishi Sunak has imposed on them.

‘The blunt truth is that we should judge politicians on their actions, not their wealth. Rishi Sunak will be remembered as the tax-hiking prime minister and no Boris Johnson distraction will stop that.