Murthy,an Indian citizen,is eligible for so-called “non-domiciled” status in Britain,something available to foreign nationals who do not regard Britain as their permanent home. That in turn allowed her to opt to pay UK tax only on income she earned in or transferred to Britain.
Murthy is the daughter one of the founders of Indian IT giant Infosys and owns about 0.9 per cent of the company entitling her to a dividend payment worth £11.6 million pounds ($20 million) last year.
In a statement late on Friday,London time,after two days of critical media coverage,Murthy said she would pay British tax on her global income,including dividends and capital gains,for the 2021/22 tax year and in future.
“I understand and appreciate the British sense of fairness and I do not wish my tax status to be a distraction for my husband or to affect my family,” she said.
Murthy said her previous tax arrangements were “entirely legal”,and that she would continue to claim India,not Britain,as her domicile. Sunak previously said she intends to return to India to care for her parents when they become infirm.
Sunak has been touted as a successor to Prime Minister Boris Johnson,whose own position has come into question after widespread criticism over illegal parties held at Downing Street during COVID-19 lockdowns and a series of other scandals.