Prime minister publishes personal tax returns post Panama Papers

In a first for a UK prime minister, David Cameron has made public a summary and explanation of his tax affairs going back six years, and the pressure is now intensifying on other senior politicians to follow suit amidst growing speculation that the Chancellor, George Osborne, is likely to release his tax information within the next few days

Cameron’s decision to release a summary of his tax returns from 2009-15 was prompted by the adverse comments following the discovery via the leaked Panama Papers that his late father, who died in September 2010, had set up an offshore company for investments.

The papers, now in the public domain, cover his final year as leader of the opposition and all years as prime minister.

They show that over the past six years Cameron has earned a total of around £1.1m and paid about £400,000 in income tax. His salary as PM amounted to £140,522 in 2014-15.

Last year’s earnings include a £46,899 share in rental income from letting out his family home in West London representing half the rental income, and £3,052 in bank interest, half the amount earned in interest in 2014 (£6,681). Cameron paid £75,895 in income tax for the year.

The notes accompanying the tax information state that in January 2010 Cameron and his wife sold their units in Blairmore, his father’s investment vehicle.

Cameron’s share of the capital gain was £9,501, below the £10,100 threshold for capital gains tax. In July 2010, the Camerons sold all other shares held jointly which resulted in a capital loss for the prime minister of £2,507, the documents state.

The accounts also show that Cameron’s mother gave him a £200,000 gift after his father's death. He received two £100,000 payments in May and July 2011, a year after inheriting £300,000 from his father.

The payments made by Mary Cameron were given tax free, and will only become liable to inheritance tax of up to 40% if she dies within seven years of handing over the money to her son.

Labour leader Jeremy Corbyn, who has indicated he will consider publishing his own tax returns, said Cameron needed to publish his full tax returns dating back to before he became prime minister in 2010, when he sold off shares in his late father's offshore investment fund for a £19,000 profit.

North of the border, SNP leader Nicola Sturgeon has already published her tax return for 2014/15, and committed to publishing it annually for as long as she is Scotland’s first minister. It shows she declared an income of £104,000, despite being eligible for a £144,687 salary.

Scottish Labour leader Kezia Dugdale, the Conservatives's Ruth Davidson and Lib Dem Willie Rennie have also published their returns.

Details of Cameron’s tax affairs are here

 

Pat Sweet |Reporter, Accountancy Daily [2010-2021]

Pat Sweet was the former online reporter at Accountancy Daily and contributor to the monthly Accountancy magazine, pub...

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