RISHI Sunak has admitted to holding a green card and filing tax returns in the US while Chancellor of the United Kingdom.

The admission – which means that Sunak was paying tax in the US while making tax laws in the UK – comes after scrutiny of his family’s tax situation ramped up in recent days.

His wife, Akshata Murty, pays a £30,000 annual fee in order to keep her non-domiciled (“non-dom”) tax status, meaning she avoids paying UK tax on earnings from outwith the country.

The Guardian reported that Murty may have avoided paying as much as £20 million in tax thanks to this arrangement, in place despite the fact that she resides on Downing Street.

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Now, it has been revealed that Sunak held a US permanent resident card (a “green card”) while Chancellor, with reports suggesting his wife also holds the same document.

Sunak’s spokesperson said he had “immediately” returned the green card in October 2021 – one year and eight months after he became Chancellor.

Sunak was installed in No 11 in February 2020 after Sajid Javid was removed following clashes with Johnson’s then chief advisor Dominic Cummings.

A spokesperson for the Chancellor said: “Rishi Sunak had a green card when he lived and worked in the US.

“Under US law, you are not presumed to be a US resident just by dint of holding a green card. Furthermore, from a US immigration perspective, it is presumed that permanent resident status is automatically abandoned after prolonged absences from the US.

“At the same time, one is required to file US tax returns. Rishi Sunak followed all guidance and continued to file US tax returns, but specifically as a non-resident, in full compliance with the law.

“As required under US law and as advised, he continued to use his green card for travel purposes. Upon his first trip to the US in a government capacity as Chancellor, he discussed the appropriate course of action with the US authorities. At that point it was considered best to return his green card, which he did immediately.

“All laws and rules have been followed and full taxes have been paid where required in the duration he held his green card.”

Pat McFadden (below), Labour’s shadow chief secretary to the Treasury, said: "The confirmation that the Chancellor held a US Green Card for the first 19 months of his time in the post begs further questions.

“Why did he keep a Green Card for so long while being a UK MP?

“Was there any tax advantage in doing so?  

“And why did he give this up after holding it for so long?

The National: Dr Len O'Hagan (left) and Shadow Europe Minister Pat McFadden during the Newry Mourne and Down District Council hosted Brexit - The Big Debate on the implications of a UK exit from the EU at the Canal Court Hotel in Newry, Northern Ireland..

“Throughout the country households are struggling with the deepest cost of living crisis in decades. Their bills are going up, their taxes are going up and they are finding it harder and harder to make ends meet. The arrangements revealed this week are not open to them.”

Naomi Smith, chief executive of campaign group Best for Britain, said: “This latest revelation about the Chancellor leaves the country asking, did the taxman pay his taxes?

“British voters are suffering from his complete mismanagement of the economy and his punitive tax hikes, and it shouldn’t take a foreign government to point out that a UK minister should pay tax in his own country.”

Boris Johnson insisted Rishi Sunak had done “absolutely everything” required after it was reported he held a US green card for a period while Chancellor.