Millionaire Tory Nadhim Zahawi to 'pay millions in tax to settle HMRC dispute'

Mega-rich Tory chairman Nadhim Zahawi has agreed to to pay millions of pounds in tax to settle a dispute with HMRC, it was reported today.

Labour said the multi-millionaire has “questions to answer” after sources told the Sun on Sunday his representatives will stump up a seven-figure sum.

Quizzed by the Mirror, a spokeswoman for Mr Zahawi refused to confirm or deny the report that he will pay a seven-figure sum.

Reports emerged last year that HMRC officials raised a “flag” over Mr Zahawi, who briefly served as Chancellor during the Tory leadership battle.

It came after critics highlighted a family trust based in the tax haven of Gibraltar, which held millions of pounds worth of shares in the YouGov polling firm Mr Zahawi co-founded in 2000.

YouGov’s accounting documents in the past called Balshore Investments "the family trust of Nadhim Zahawi 's family”, and “a company owned by the parents of Nadhim Zahawi”.

Critics highlighted a Zahawi family trust based in the tax haven of Gibraltar (Alastair Grant/AP/REX/Shutterstock)

Balshore’s shares were eventually sold. Tax Policy Associates, run by a former tax lawyer, has said if the shares had been owned by Mr Zahawi personally, he would have been liable to £3.7million in capital gains tax.

Mr Zahawi has previously insisted his parents’ trust held the shares because of his father’s “business know-how”.

But Labour Party chair Anneliese Dodds said “there are serious questions for both Nadhim Zahawi and Rishi Sunak to answer”.

She said: “If true, this is another nail in the coffin of the honesty, integrity and accountability promised by Rishi Sunak. People are sick and tired of the constant sleaze and scandal surrounding this government.”

Labour said the multi-millionaire has “questions to answer” (Getty Images)

She added: “Not for the first time, Rishi Sunak’s judgement has been called into serious question. The question remains: is he strong enough to sack Nadhim Zahawi?”

A spokeswoman for Mr Zahawi said: “Upon his appointment, Mr Zahawi confirmed that his tax affairs were and are fully up to date.

“He is not a beneficiary of Balshore investments, and he has always said that he will answer any questions from HMRC which he has always done.”

She refused to say if any other member of his family was a beneficiary of Balshore, or whether Mr Zahawi was due to pay millions to HMRC, saying he would be issuing no further statements on the matter.