Nadhim Zahawi ‘agreed on penalty’ to settle tax bill worth millions

The Guardian has been told that the former chancellor paid a penalty imposed by HMRC. Photograph: Thomas Krych/ZUMA Press Wire/REX/Shutterstock

The Conservative party chair, Nadhim Zahawi, agreed to pay a penalty to HMRC as part of a seven-figure settlement over his tax affairs, the Guardian has been told.

The former chancellor, who still attends the cabinet, has been subject to extensive questions in parliament and the media in recent days after it emerged he agreed to pay millions to HMRC in December after a settlement with the tax agency.