UK's Former Chancellor Nadhim Zahawi Settles $6 Million Tax Error Payment

By Thea Felicity

May 12 2024, 12:59 PM EDT

BRITAIN-POLITICS-CONSERVATIVES — Britain's former Chancellor of the Exchequer Nadhim Zahawi arrives at 10 Downing Street for a meeting with Britain's new Prime Minister Liz Truss in central London, on September 6, 2022. - Liz Truss on Tuesday officially became Britain's new prime minister, at an audience with head of state Queen Elizabeth II after the resignation of Boris Johnson. The former foreign secretary, 47, was seen in an official photograph shaking hands with the monarch to accept her offer to form a new government and become the 15th prime minister of her 70-year reign. ISABEL INFANTES/AFP via Getty Images

Former UK Chancellor Nadhim Zahawi has disclosed to the BBC that he paid nearly £5 million ($6 million) to authorities to resolve his tax affairs.

The controversy emerged when it was revealed that Zahawi while serving as chancellor in 2022, reached a multi-million-pound tax agreement with HMRC concerning shares in YouGov.

Zahawi, dismissed as Tory Party chairman last year following an ethics inquiry, admitted regret for not being more precise in his ministerial declaration regarding the settlement.

Despite his apology, Zahawi maintained that HM Revenue and Customs (HMRC) classified the error as non-deliberate and "careless."

Chancellor Nadhim Zahawi's Tax Settlement

The former chancellor, who announced his decision to step down as the MP for Stratford-on-Avon at the next election, also clarified that his total payment to resolve the issue was "just shy of £5 million".

He acknowledged his responsibility for the oversight but reiterated HMRC's determination that the error was non-deliberate and stemmed from carelessness.

Following an investigation by Prime Minister Rishi Sunak's ethics adviser, Sir Laurie Magnus, it was found that Zahawi had engaged with HMRC regarding his taxes since April 2021, ultimately finalizing the settlement in September 2022.

Despite this, Zahawi was faulted for insufficiently disclosing the matter within the government and for lacking transparency in public communication.