Revealed: officials raised ‘flag’ over Nadhim Zahawi’s tax affairs before he was appointed chancellor

HMRC alert raised about offshore family trust which held shares worth £20m in polling firm he co-founded

A “flag” was raised by officials over the financial affairs of the new chancellor, Nadhim Zahawi, before he was promoted, the Observer can reveal.

Civil servants in the Cabinet Office’s propriety and ethics team are said to have alerted Boris Johnson to a HM Revenue and Customs “flag” over Zahawi before his appointment. The PM appointed him despite the possible concerns over his tax affairs.

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