Rishi Sunak has admitted holding a US green card while chancellor, amid demands he “come clean” about his finances.
The chancellor was first reported by Sky News on Thursday to have been a holder of a US green card while serving in No.11.
A spokesperson for the chancellor said on Friday afternoon: “Rishi Sunak had a green card when he lived and worked in the US.
“As required under US law and as advised, he continued to use his green card for travel purposes.
“Upon his first trip to the US in a government capacity as chancellor, he discussed the appropriate course of action with the US authorities. At that point it was considered best to return his green card, which he did immediately.
“All laws and rules have been followed and full taxes have been paid where required in the duration he held his green card.”
Sunak was appointed chancellor in February 2020, following the resignation of Sajid Javid.
Sunak’s millionaire wife, Akshata Murty, has also been revealed by The Independent to currently hold the tax-reducing non-domiciled status.
Speaking at a press conference on Friday afternoon, the prime minister revealed he did not know about Murty’s tax status until it was made public.
Asked about Sunak having held a green card, he said: “As I understand it the chancellor has done everything he was required to do.”
The prime minister said his chancellor, who was seen as the leading candidate to take over as Tory leader should Johnson be ousted, was doing an “absolutely outstanding” job.
“I don’t think people’s families should be should be dragged into this,” he said.
“If there are such briefings they are not coming from us in No.10 and heaven knows where they are coming from.”
Sunak has blamed Labour for the briefing against him and his wife.
But the Daily Telegraph reported that unnamed allies of the chancellor claimed the prime minister’s office was behind the leaks – an allegation No.10 and No.11 strongly denied.
The US inland revenue says anyone who has a green card is treated as a lawful permanent resident and is considered a “US tax resident for US income tax purposes”.
Labour leader Keir Starmer has said Sunak could be guilty of “breathtaking hypocrisy” if his wife was reducing her own tax bill as the chancellor increased national insurance for millions of Britons.
Ed Davey, the Lib Dem leader, had written to cabinet secretary Simon Case and the independent adviser on ministers’ interests Lord Geidt, urging them to open an investigation.
“How could the man who is responsible for UK tax policy regard any permanent residency status for the United States as acceptable?” he said earlier.
“This would be a huge conflict of interest - and a serious breach of the ministerial code. Rishi Sunak must come clean about his own financial arrangements and whether he has ever held a green card.”