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Angela Rayner, the Deputy Prime Minister, has acknowledged an underpayment of stamp duty related to her £800,000 property purchase in Hove. This admission comes as the Prime Minister has voiced his support for her.
Rayner, who also serves as Housing Secretary, stated that the arrangements concerning her family residence in Greater Manchester should have resulted in a higher stamp duty rate.
While denying any intention to evade the tax, Rayner attributed the “mistake” to initial legal counsel that did not “properly take account” of the specifics of her situation.
During Prime Minister’s Questions, Labour leader Sir Keir Starmer expressed his unwavering support for his deputy, stating he was “very proud to sit alongside” her.
Conversely, Conservative leader Kemi Badenoch has called for Rayner’s dismissal, deeming her position “untenable.”
Rayner has stated she has contacted HMRC to determine the outstanding tax amount and has referred herself to the Prime Minister’s standards adviser for investigation.
Rayner has faced increasing scrutiny in recent weeks following reports suggesting she avoided paying the higher stamp duty rate for additional property purchases, potentially saving £40,000 on the East Sussex flat.
The admission of an additional tax liability poses a challenge for the Deputy Prime Minister, who previously criticized the conduct of Conservative ministers prior to Labour assuming office last year.
This situation also presents a political hurdle for Sir Keir, as Rayner, also Labour’s deputy leader, serves as a crucial link to the party’s left wing and the unions that underpin its support.
The Conservative Party has also emphasized that Labour increased the higher stamp duty rate from 3% to 5% in last year’s Budget.
In a statement, Rayner confirmed she paid the standard stamp duty rate upon purchasing the flat in May, acting upon legal advice received at the time.
She further explained that she partially funded the purchase by selling her remaining stake in the family home in Ashton-under-Lyne, Greater Manchester, which she shares with her former husband and family.
Rayner clarified that a portion of her interest in the home had been previously sold following her divorce to a court-mandated trust established to support the care of her son, who has lifelong disabilities.
The arrangement was designed to provide her son with “security of knowing the home is his, allowing him to continue to live in the home he feels safe in,” and was “a standard practice in circumstances like ours.”
However, new legal advice revealed “complex deeming provisions” within the trust, indicating she should have paid the higher stamp duty rate when purchasing the Hove flat.
“I acknowledge that due to my reliance on advice from lawyers which did not properly take account of these provisions, I did not pay the appropriate stamp duty at the time of the purchase,” she stated.
“I deeply regret the error that has been made. I am committed to resolving this matter fully and providing the transparency that public service demands.”
Downing Street has yet to outline the terms of reference for the inquiry to be conducted by Sir Laurie Magnus, the Prime Minister’s adviser on ministerial interests.
During Prime Minister’s Questions, Sir Keir informed MPs that Rayner had “explained her personal circumstances in detail.”
“I know from speaking at length to the deputy prime minister just how difficult that decision was for her.”
“She has now referred herself to the independent adviser. That is the right thing to do,” he added.
Speaking to reporters, Kemi Badenoch stated, “If the prime minister had a backbone, then he should have sacked her already.”
“If you are the deputy prime minister helping to set tax policy, if you are the housing secretary deciding where people are going to live [and] how much that’s going to cost, then you need to get your own affairs in order,” she said.
“Of course we understand that people have different circumstances, and difficult personal circumstances. But that doesn’t mean that you should not follow the law.”
Liberal Democrat leader Sir Ed Davey suggested Rayner’s position “may well become untenable” if the investigation concludes she violated ministerial regulations.
He added, “As a parent of a disabled child, I know the thing my wife and I worry most about is our son’s care after we have gone.”
“So I can completely understand and trust that the deputy prime minister was thinking about the same thing here.”
The existence of the trust was previously undisclosed, and Rayner stated she was restricted from sharing further details due to a court order, which was lifted on Tuesday following her successful application to have it waived.
When asked by Sky News if she considered resigning instead of revealing details about her son, she responded, “I spoke to my family about it.”
“I spoke to my ex-husband, who has been an incredibly supportive person because he knows that all I’ve done is try and support my family and help them.”
“The number one priority for me and my ex-husband has always been to support our children and do the best thing for our children.”
Rayner has not specified when she obtained the additional legal advice that revealed her additional tax liability.
As recently as Friday, the Deputy Prime Minister maintained she had paid the “relevant duty” on the Hove property.
Sir Keir publicly backed his deputy on Monday, stating she had “had people briefing against her and talking her down over and over again.”
No 10 has not commented on when the Prime Minister was informed about Rayner’s underpayment or whether he has reviewed the relevant legal advice.
The Conservative Party has also raised questions regarding whether Rayner’s government-provided flat in Admiralty House, central London, should be considered her primary residence for council tax purposes, as opposed to her home in Ashton-under-Lyne.
The Cabinet Office has previously stated that it is a “longstanding principle” that the government covers council tax on official residences used by ministers as a second home.
In her statement, Rayner affirmed that the house in Ashton-under-Lyne remains her “family home,” where she is registered for the majority of official and financial purposes, including credit cards, and where she keeps the “majority of my possessions.”
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