A south Warwickshire MP has agreed to pay several million pounds in tax to HMRC after a dispute over his family's financial affairs, according to the Sun on Sunday

MP for Stratford-upon-Avon Nadhim Zahawi is reportedly set to repay the seven-figure sum after questions were raised over whether he used an offshore company to hold shares in YouGov.

A stake worth more than £20million was held in his family trust, Gibraltar-registered Balshore Investments, until it was sold in 2018.

The former Chancellor, who also co-founded YouGov, has previously denied benefiting from the trust.

Mr Zahawi has insisted "he does not have, and never has had, an interest in Balshore Investments and he is not a beneficiary".

But according to the Sun on Sunday, records show money the Conservative MP owed to YouGov was partly repaid from Balshore dividends.

Thinktank Tax Policy Associates has estimated the trust's sale of YouGov shares should have incurred capital gains tax of around £3.7 million.

A spokesman for Mr Zahawi told the national title he had "never had to instruct any lawyers to deal with HMRC on his behalf".

advertisement

They added: "As he has previously stated, his taxes are properly declared and paid in the UK."

Since the news broke on Saturday (January 15) a Tweet from Mr Zahawi on tax avoidance dating back to 2015 has been reshared across social media.

A spokesperson for HMRC said: "We cannot comment on identifiable taxpayers."

The Stratford MP was one of the early candidates to be knocked out of the running to become prime minister last summer, having joined the race of eight Tories to replace Boris Johnson.

The 55-year-old promised at the time to publish his tax returns if he won the leadership contest

And Mr Zahawi been tipped to become the new PM by leader of Warwick District Council Cllr Andrew Day who said at the time the Stratford MP was an "exceptionally capable man".

The former health secretary was also left embarrassed last October when an article he wrote backing Mr Johnson to return as PM had to be deleted within minutes as the former party leader dropped out of the leadership contest.

Mr Zahawi's article 'Get ready for Boris 2.0, the man who will make the Tories and Britain great again' described the former PM as a "reinvigorated man" and said he "retains his razor-sharp wit, ability to inspire and common touch", adding "he has also evolved"

advertisement