Boris Johnson has agreed to pay an unsettled tax bill to the US government.
The Foreign Secretary, who was born in New York and holds a US as well as British passport, decided to pay the outstanding bill ahead of a visit to Boston, New York and Washington.
Allies joke that there is now no question of him being “detained by the Internal Revenue Service at JFK airport”, while his spokesman simply stated that, “The matter has been dealt with”.
Mr Johnson has refused to say how much capital gains tax he owes the US from the sale of his first family home in North London, though his allies say it is “nowhere near” the £100,000 figure estimated by some.
Mr Johnson has previously said his American citizenship was “very difficult to give up”.
Mr Johnson’s decision to pay up was taken grudgingly, but will ensure that his visit to the US — intended to drum up investment for London — is not dogged by questions about his tax affairs.
All US citizens, including those with dual citizenship, are legally obliged to file a tax return and pay US taxes wherever they are living. Capital gains tax on the sale of a primary residence is not applied by UK tax authorities, but is levied in the US.
Mr Johnson used to live in Furlong Road, Islington, according to election filings. Land Registry records show that the house was bought for £470,000 in March 1999 and sold for £1.2m in May 2009.
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