Rishi Sunak orders investigation into Tory chairman Nadhim Zahawi amid tax dispute penalty

Rishi Sunak has ordered an investigation into Nadhim Zahawi after the Tory party chairman paid a penalty to resolve a multimillion-pound tax dispute.

The prime minister has defied calls to sack the MP for Stratford-upon-Avon, who said he had "acted properly throughout" amid the settlement which was estimated at around £5m.

Mr Zahawi has insisted his "error" over shares in the YouGov polling company he co-founded was “careless and not deliberate."

The investigation will focus on Mr Zahawi’s ministerial declarations, but could extend to his prior tax arrangement and whether he lied to the media.

Sign up for our newsletters.