Downing Street has confirmed that the PM has asked the independent adviser on ministers’ interests to investigate Rishi Sunak – at the chancellor’s request.
Mr Sunak had asked Boris Johnson to refer him to Lord Geidt after days of criticism over his wife’s tax status and his possession of a US residency green card, even after he was appointed to Number 11.
He asked the peer to determine whether all his interests were “properly declared”.
Mr Sunak has said that he had “always followed the rules” and that he hoped the review would “provide further clarity”.
A spokeswoman for the prime minister said: “I can confirm that the prime minister has agreed to the request from the chancellor for Lord Geidt to undertake this work.
“The prime minister has full confidence in the chancellor.”
The chancellor has been under growing pressure over recent days since it emerged that his Indian-born wife Akshata Murty, a multi-millionaire, held non-domicile tax status, enabling her to avoid paying UK taxes on overseas income.
Rishi Sunak tax row: George Eustice says he ‘wouldn’t seek US green card or non-dom status’
Rishi Sunak asks PM to refer him to Independent Adviser on Ministers’ Interests
Rishi Sunak: Whitehall inquiry launched into leak of chancellor’s wife’s tax status
Ms Murty subsequently issued a statement saying that she would now pay UK tax on all worldwide earnings.
Mr Sunak, who before becoming an MP lived and worked in America, has also faced questions over the disclosure that he still held US green card permanent residency status until last autumn, a year and a half after becoming chancellor.
Labour has accused Mr Sunak of hypocrisy over his household financial affairs – at a time when the government has been raising national insurance for millions of workers and implementing benefits increases that are much lower than the current rate of inflation.