Nadhim Zahawi blocked from knighthood after tax questions raised

Conservative party chairman Nadhim Zahawi is said to have been rejected for a knighthood over concerns about his tax affairs.

The cabinet minister fighting for his political life after admitting he had to settle a tax dispute withHMRC was reportedly put forward for the recent New Years honours list.

But Whitehall officials blocked the honour after checking with HRMC about Mr Zahawis tax affairs in December, according to the Sun on Sunday.

The Independentfirst revealed last July that Mr Zahawi was being investigated by HMRCover the sale of shares in the polling companyYouGov he co-founded 22 years ago.

Tax campaigner Richard Murphy, professor at Sheffield University Management School, told The Independent that HMRC has the power to share concerns about unresolved tax issues of individuals in line for honours or top political roles.

They have the power to advise the security services, No 10, Cabinet Office about potential risks with appointments, said Prof Murphy.

Sir Edward Troup, former permanent secretary at HMRC, said the body had a traffic-light system red, amber and green to warn the government of the potential risk in giving a knighthood to those who have had tax problems.