Boris Johnson pays 'absolutely outrageous' American tax bill

London Mayor Boris Johnson has reportedly agreed to pay a six-figure tax bill to the United States government over a house in London that he sold six years ago.

Johnson, who holds both US and British passports, had previously refused to pay the "absolutely outrageous" bill, but appears to have given in ahead of a visit to Boston, New York and Washington next month.

The Daily Telegraph claims the bill is in the region of £100,000 and relates to the sale of a house in Islington, north London.

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US citizens are legally required to file a tax return and pay US taxes, including capital gains tax, wherever they are living. Johnson, who was born in New York, bought the property in Islington for £470,000 in 1999 and sold it for £1.2m in 2009, a £730,000 increase.

Mark Sher, a US tax specialist at American private wealth manager Maseco, previously told City AM: "He's a citizen with a US passport, and therefore must pay US taxes. The possibility of him going to jail is minimal, because he'll probably end up paying the tax. But if he doesn't, jail becomes a very distinct reality."

Johnson's "allies" told the Financial Times the bill was "nowhere near" the £100,000 estimate but said there was now no question of him being "detained by the Internal Revenue Service at JFK airport".

Last November, the mayor was asked by National Public Radio in America if he would pay the bill. "No is the answer. I think it's absolutely outrageous. Why should I?" he said. "I haven't lived in the United States since I was five years old. I pay my taxes in full in the United Kingdom, where I live and work."

Meanwhile, Johnson is reportedly pursuing the American embassy for £8m in unpaid congestion charges. The embassy claims its diplomats are immune.