Conservative Party chairman Nadhim Zahawi has been sacked from the role over a tax dispute while he was Chancellor.

In a letter, Prime Minister Rishi Sunak said Mr Zahawi had committed a "serious breach of the ministerial code."

The now-former chairman has been under increasing pressure in recent days.

He previously admitted paying a penalty to HM Revenue & Customs to settle unpaid tax. It was reported it was part of an estimated £4.8 million settlement dispute with HMRC.

Isle of Wight County Press:

Handout image of a letter from Prime Minister Rishi Sunak to Nadhim Zahawi who has been sacked as Conservative Party chairman (10 Downing Street/PA)

The row involved the sale of shares in YouGov, the polling firm which Mr Zahawi founded.

An investigation was carried out by Sir Laurie Magnus and concluded "insufficient regard for 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”.

Mr Zahawi pointed out that HMRC said there had been a “careless and not deliberate” error, and insisted he was “confident” he had “acted properly throughout”.

The Isle of Wight County Press has asked Isle of Wight MP Bob Seely for a comment.