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Chancellor George Osborne releases tax return after prime minister's personal finances row

George Osborne and David Cameron Credit: PA

Chancellor George Osborne has released his tax return after the prime minister urged him to publish the records.

The publication of Osborne's records comes after David Cameron said earlier today he believes it is right for prime ministers, "potential prime ministers", chancellors and shadow chancellors to "show greater transparency" by publishing information about the taxes they pay.

David Cameron has been caught up in a row over his tax affairs.

The prime minister's personal financial records revealed he was given a £200,000 gift, which could potentially avoid inheritance tax, by his mother after his father's death.

The document containing his tax return

The tax return shows the Chancellor's salary of £120,526 and £3 of bank interest.

The document states: "Compared to his publicly available gross salary as Chancellor of the Exchequer and as an MP (£134,565), the figures shown here include deductions for employee pension contributions and additional liabilities to cover the utilities for the flat in Downing Street.

"This latter item is,effectively, a charge on the private benefit of accommodation in Downing Street; we understand this is a longstanding practice."

He also receives a rental income of £33,562 from letting out his London family home.

He also receives dividend income relating to shares in Osborne and Little Group Limited - a UK resident manufacturing company of wallpapers and fabrics that was founded by his father.

The Chancellor stated in the publication of his records that these dividends come from shares that he owns directly and also as life tenant of a family trust, based and resident in the UK which holds, as its sole asset, shares in that company.

The Chancellor of the Exchequer paid income tax on these dividends.

Osborne also stated in the document he "had no other sources of income or capital gains, from either the UK or overseas and has no offshore interests in shares or anything else".

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