Nadhim Zahawi ‘agreed on penalty’ to settle tax bill worth millions

Claim over sum imposed by HMRC likely to raise further questions for Conservative party chair

The Conservative party chair, Nadhim Zahawi, agreed to pay a penalty to HMRC as part of a seven-figure settlement over his tax affairs, the Guardian has been told.

The former chancellor, who still attends the cabinet, has been subject to extensive questions in parliament and the media in recent days after it emerged he agreed to pay millions to HMRC in December after a settlement with the tax agency.