Rishi Sunak on Thursday night said he and his family had been the victims of a political “smear” campaign after his wife’s non-domicile tax status emerged.
The Chancellor defended Akshata Murty, who lives with him in Downing Street, by insisting “every penny” of tax she owes in the UK has been paid.
Mr Sunak has been on the end of a string of politically damaging leaks and briefings in recent weeks as his standing in opinion polls has dropped amid a cost of living crunch.
Allies of the Chancellor have pointed the finger at Number 10 for seeking to undermine Mr Sunak given he is tipped as a potential successor should Boris Johnson be forced out.
Ms Murty has non-domicile status because she is an Indian citizen and the country does not allow people to hold two citizenships, according to her spokeswoman.
Mr Sunak told The Sun: “Every single penny that she earns in the UK she pays UK taxes on, of course she does.
“And every penny that she earns internationally, for example in India, she would pay the full taxes on that.
“That is how the system works for people like her who are international who have moved here.”
He added: “To smear my wife to get at me is awful, right?”
The non-dom status leak was the latest unhelpful disclosure linked to Mr Sunak, following stories that he has blocked extra public spending demands designed to alleviate the cost of living crisis and about his expensive clothing.
Mr Johnson’s relationship with Mr Sunak has been strained at points this year, not least when the Prime Minister’s supporters felt the Chancellor did not do enough to support him over “partygate”.
Discussing the succession of anti-Sunak leaks and briefings, an ally of the Chancellor directly blamed the Prime Minister’s camp.
“It’s all coming from Number 10,” the source told The Telegraph.
“Rishi’s the only credible show in town. Ever since he sat down from the Spring Statement, it’s been one thing after the other. I don’t think it’s in anyone’s interest other than the Prime Minister’s.”
Speaking about tensions over spending, the source added: “The Prime Minister loves to be loved… he really doesn’t have any principles at all. It is just about trying to maintain his popularity.”
