Nadhim Zahawi: Tax error was careless and not deliberateon January 21, 2023 at 2:42 pm

Former UK Chancellor Nadhim Zahawi has sought to address questions over his tax affairs, saying he did settle a matter with HMRC after an “error”.

Tory Party chairman Mr Zahawi said he wanted to “address some of the confusion about my finances”.

He said the mistake had been accepted by HMRC as “careless and not deliberate”.

Following the claims, Labour said the former chancellor should be sacked.

Mr Zahawi has been under pressure over claims he tried to avoid tax and had to pay it back as part of a multi-million pound settlement.

In a statement released on Saturday, Mr Zahawi said: “As a senior politician I know that scrutiny and propriety are important parts of public life. Twenty-two years ago I co-founded a company called YouGov. I’m incredibly proud of what we achieved. It is an amazing business that has employed thousands of people and provides a world-beating service.

“When we set it up, I didn’t have the money or the expertise to go it alone. So I asked my father to help. In the process, he took founder shares in the business in exchange for some capital and his invaluable guidance. Twenty one years later, when I was being appointed chancellor of the exchequer, questions were being raised about my tax affairs. I discussed this with the Cabinet Office at the time.

“Following discussions with HMRC, they agreed that my father was entitled to founder shares in YouGov, though they disagreed about the exact allocation. They concluded that this was a ‘careless and not deliberate’ error.

“So that I could focus on my life as a public servant, I chose to settle the matter and pay what they said was due, which was the right thing to do.

“Additionally, HMRC agreed with my accountants that I have never set up an offshore structure, including Balshore Investments, and that I am not the beneficiary of Balshore Investments. This matter was resolved prior to my appointments as chancellor of the duchy of Lancaster and subsequently chairman of the party I love so much. When I was appointed by the prime minister, all my tax affairs were up to date.”