Sunak under pressure over when he knew about Nadhim Zahawi tax inquiry

Rishi Sunak has instructed his ethics adviser to investigate the tax affairs of the Conservative party chair, Nadhim Zahawi, but faces growing pressure over whether he knew about the HMRC inquiry when he appointed Zahawi to his cabinet.

The prime minister admitted there were questions that need answering after suggestions that Zahawi was forced to pay a fine and millions of pounds in unpaid taxes to HMRC after an investigation while he was Boris Johnsons chancellor.

Sunaks official spokesperson said the prime minister was not aware that Zahawi had paid a penalty to HMRC when he told MPs in the Commons last week his colleague had addressed the matter in full, adding that when the prime minister appointed him he was assured by officials there were no outstanding issues.

A source in the government told the Guardian that Downing Street had been aware of a penalty as part of a settlement with HMRC when Sunak appointed Zahawi, who is also a Cabinet Office minister, to the role. However, Downing Street strongly denied the claim.