House of Commons/PA
Rishi Sunak’s tax return shows he has an effective tax rate of just 22.8 per cent, despite bringing in more than £2.2 million in earnings.
The rate is the same effective tax rate as a teacher, who earns £41,600 per year with an effective tax rate of 22.8 per cent on average.
The Prime Minister released the summary of his tax affairs on Friday afternoon as the House of Commons was in recess.
Rather than a full tax return, No 10 published “a summary” of Mr Sunak’s UK taxable income, capital gains and tax paid over the last tax year as reported to HM Revenue & Customs, prepared by accountancy service Evelyn Partners.
The statement showed he paid £508,308 in tax in the financial year 2022/23.
Mr Sunak made nearly £1.8 million through capital gains – up from £1.6 million in 2021/22 – as well as £293,407 in other interest and dividends.
All of the investment income and capital gains came from a US-based investment fund listed as a blind trust, according to the summary.
He also earned £139,477 from his MP and prime ministerial salaries, a sum that made up just 6 per cent of his total income.
The Tory leader’s total income was up 13 per cent from the previous year, rising from nearly £2 million to £2.2 million.
It takes his total earnings over the last four years to about £7 million.
He paid an overall tax rate of only about 23 per cent of his annual income in 2022/23, because most of his earnings were in the form of capital gains, which is taxed at a lower rate than income.
Mr Sunak vocally backed the slashing of the top rate of capital gains tax from 28 per cent to 20 per cent by the Tory Government in 2016.
Tax expert Dan Neidle said: “What devious planning did he use to pay so little tax? Absolutely none. Most of that £2.3m is in the form of capital gains, and we tax capital gains on shares at only 20 per cent.”
Robert Palmer, executive director at Tax Justice UK, said: “At the moment someone who earns most of their money from their wealth – like the Prime Minister – pays a much lower tax rate than someone who relies on going out to work for their living. We need to fix this to make sure that income from wealth is taxed at the same rate as income from work.”
Labour MP Richard Burgon posted on X, formerly Twitter: “Our tax system is rigged in favour of the super-rich. It’s time to make them pay their fair share!”
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