Nadhim Zahawi has been sacked as Conservative party chairman after he was found to have broken the ministerial code over his tax affairs.

Prime Minister Rishi Sunak said an enquiry had discovered a "serious breach of the ministerial code" by the Stratford-upon-Avon MP.

The investigation was launched after it was revealed that Mr Zahawi had paid a penalty to HMRC over previously unpaid tax, with the PM asking independent ethics adviser Sir Laurie Magnus to look into his tax affairs.

Mr Zahawi said last week that the error was "careless and not deliberate".

The findings were sent to Mr Sunak this morning (January 29).

Sir Laurie said Mr Zahawi had shown "insufficient regard for the principles of the general principles of the ministerial code and the requirements in particular under the seven Principles of Public Life, to be honest, open and an exemplary leader through his own behaviour".

"I also fully appreciate the pressures faced by ministers as they address the complex issues of government and the difficulties they encounter in balancing the demands of their personal lives and their ministerial responsibilities.

"These factors, however, cannot mitigate my overall judgement that Mr Zahawi's conduct as a minister has fallen below the high standards that, as prime minister, you rightly expect from those who serve in your government."

Sir Laurie's four-page report said Mr Zahawi's contact with HMRC began in April 2021 and the minister failed to declare this to the Treasury’s permanent secretary when he was made chancellor by Boris Johnson in July 2022.

Mr Zahawi only updated his declaration on 15 July 2022.

The report also said the former chairman breached the code again by not disclosing that he had paid a penalty for tax avoidance when he was appointed to Liz Truss’s cabinet last September, and then to Mr Sunak’s in October.

Sir Laurie said: "Given the nature of the investigation by HMRC, which started prior to his appointment as secretary of state for education on 15 September 2021, I consider that by failing to declare HMRC's ongoing investigation before July 2022 - despite the ministerial declaration of interests form including specific prompts on tax affairs and HMRC investigations and disputes - Mr Zahawi failed to meet the requirement to declare any interests which might be thought to give rise to a conflict."

He added: "I also conclude that, in the appointments process for the governments formed in September 2022 and October 2022, Mr Zahawi failed to disclose relevant information - in this case the nature of the investigation and its outcome in a penalty - at the time of his appointment, including to cabinet office officials who support that process.

"Without knowledge of that information, the cabinet office was not in a position to inform the appointing prime minister."