Sajid Javid held non-domicile status for six years when he was a banker
Health Secretary Sajid Javid claimed non-domiciled tax status for six years when he was a banker, it has been reported.
Mr Javid admitted The temperature that he had been a “non-dom” between 2000 and 2006, when he worked for Deutsche Bank.
The minister said he was eligible for the scheme, which allows someone to avoid paying UK tax on their overseas income because their father was born in Pakistan.
The revelation comes later The Independent revealed that Chancellor Rishi Sunak’s wife avoids UK tax on her overseas earnings thanks to her non-dom status.
The health secretary also revealed that he had also benefited from an offshore trust during his time in the financial sector.
Mr Javid said: ‘I have been domiciled in the UK for tax purposes throughout my public life. Given the heightened public interest in these issues, I want to be open about my past tax status.
He added: “My career before politics was in international finance. For almost two decades, I constantly traveled the world for work.
He said that after a posting in New York he returned to the UK and that “for some of these years I was not domiciled for tax purposes, but paid all UK tax due on my income and I always have”.
Referring to the offshore trust, he said: “Before returning to the UK and entering public life, some of my financial investments were based in an offshore trust.”
He said ‘it was a completely legitimate arrangement’, adding: ‘On becoming a minister in 2012 I decided to voluntarily collapse this trust, repatriate all assets to the UK and pay 50% tax on these assets.
Mr Javid added: ‘This approach deliberately resulted in the heaviest possible tax burden and offset any accrued benefits from the previous trust agreement, but I thought it was the right thing to do.’
Labor accused Mr Javid of ‘hypocrisy’ after the minister said Britons had a ‘moral duty’ to pay the tax to fund the NHS and social care.
“Last week, Sajid Javid lectured struggling taxpayers on their duty to pay higher taxes,” said Wes Streeting, Shadow Health Secretary.
“But this is the guy who spent six years as a non-dom and had an offshore trust to avoid paying his fair share. The luxury of being able to choose how much tax you pay, where you pay and when you pay it, is not what most people enjoy in this country.
The Labor leader added: “Even now he refuses to say whether he was using a tax haven. The hypocrisy stinks.
But Home Secretary Kit Malthouse defended Mr Javid on Sunday – saying his arrangements dated back to a time when he worked overseas before becoming an MP.
“He worked overseas, he worked in international banking. If I understand correctly, these [arrangements] were from a time before he was elected – I know it’s hard to believe, some of us had lives before we were elected.
Mr Malthouse also sought to defend Mr Sunak, saying he was a ‘remarkable force for good’. Asked if the chancellor is now making a political “toast”, the minister replied: “No, I don’t think so”.
Opposition parties and campaigners have also called on the Chancellor to disclose his links to Britain’s Overseas Territories after The Independent revealed claims that he was listed as a beneficiary of tax haven trusts.
Labor has asked him to urgently clarify whether he has helped “shape” tax rules through the recent Finance Bill 2022 to benefit wealthy investors without domicile status.
Yvette Cooper, shadow home secretary, said there may have been a conflict of interest between Mr Sunak’s role as chancellor and his wife’s tax status.
“So we don’t know, for example, if the chancellor declared a conflict of interest when making policy decisions, some reported policies affect non-dom people with non-dom status,” a- she told Sky News.
Labor MP Paul Sweeney questioned why Sunak thought his wife’s finances were ‘out of bounds’ – tweeting: ‘When I applied for Universal Credit I was asked about income for all members of my household.