Angela Rayner, the Deputy Prime Minister and Housing Secretary, has confirmed she owes more in stamp duty than originally paid on her £800,000 seaside flat purchase, a mistake she attributes to incorrect legal guidance.
The Labour frontbencher has referred herself to Sir Keir Starmer’s ethics advisor and contacted HMRC, pledging full cooperation and repayment of any outstanding tax.
“As soon as I knew that that was the case, I have alerted and referred myself to the independent adviser on the ministerial code… and also contacted HMRC to say that, there is additional tax owing on this. I’m prepared to pay that and fully comply with the HMRC as well,” she told Sky’s Electoral Dysfunction podcast.
Complex Legal Background
Rayner’s explanation centres on a legal trust set up in 2020 for her disabled son, in which her former Ashton-under-Lyne home was placed. The flat in Hove was then purchased using proceeds from her 25% ownership stake in that home.
“I think the accusations were that I set up a trust and I flipped it to try and avoid paying it. But actually, the complex area of the trust, which the advice that I relied upon didn’t pick that up.”
Rayner said she was legally barred from discussing her tax arrangements earlier due to a court order linked to her 2023 divorce. The trust, she insists, was not a tax dodge, but a court-sanctioned move to ensure long-term care for her son.
Asked directly if she attempted to avoid tax, she replied: “No… the trust was set up by a court to provide for my son after an injury.”
Estimated £40,000 Tax Shortfall
Tax experts estimate she could owe up to £40,000 more in stamp duty. That figure emerged after legal advice clarified she would still be liable for the higher rate of stamp duty, even though she no longer legally owned her Greater Manchester property.
The crux of the issue lies in her removal from the deeds of the Ashton-under-Lyne property. At the time of purchasing the Hove flat, Rayner was not listed as owning another property, which significantly reduced her stamp duty liability.
However, she had previously indicated the Greater Manchester property remained her primary residence, which reportedly helped her avoid around £2,000 in council tax at her government-provided residence in Admiralty House, central London.
A Moment of Controversy Amid Tax Rise Talks
Rayner’s admission arrives at a politically charged moment. The Labour government is reportedly preparing to raise taxes to tackle a looming deficit, with Chancellor Rachel Reeves likely to target second-home ownership and unearned wealth.
Shadow Chancellor Mel Stride didn’t mince words: “It is utterly extraordinary that while working families and businesses are being hammered by Labour’s tax hikes, Angela Rayner has failed to pay the right amount of stamp duty.
The deputy prime minister should not be setting the rules when she fails to keep them herself.”
Personal Reflection and Public Appeal
Rayner acknowledged the political heat but insisted she acted transparently when she discovered the error. She also revealed she discussed the situation with her ex-husband, prioritising their children above all else.
“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. I made a mistake based upon the advice that I relied upon that I received at the time, and a leading expert has now said that advice was wrong.”
In a candid appeal to the public, Rayner added: “Most people make mistakes. I conducted myself in trying to do the right thing, and I hope that people can see that.”
While some see the move to self-report as honourable, critics question whether it’s enough, especially as Labour champions tax fairness and economic transparency. The political fallout will likely depend on how thoroughly Rayner’s conduct is scrutinised and how swiftly she resolves her outstanding liabilities.
For now, this saga places a spotlight not just on Rayner, but on the wider question of how politicians handle their personal finances and how that stacks up against the standards they set for everyone else.
