It was revealed last week that the Chancellor’s wife, Akshata Murty, has a non-dom tax status. This has caused alot of coverage by the media and some considerable outrage from the public. How can the wife of the Chancellor of the United Kingdom who has lived here since 2013 got married here and raised her children here, be paying tax in another country?

Just to explain the basics, a ‘non-dom’ is someone who is resident in the UK but, domiciled elsewhere.  Now, basically speaking, domicile or ‘domicile of origin’ is where your natural home is or more specifically where your father’s permanent home is.   After 15 years in the UK you can be deemed domicile but there is also a domicile of Choice where you can change your domicile.

I think bearing in mind what her husbands job is and that her life is here, it would be fair to expect that she would change her domicile but, she didn’t have to.

Here is a link to me talking to Ian Payne at LBC Radio on Sunday, 10 April on the subject.