UK Deputy Prime Minister Angela Rayner has admitted to underpaying stamp duty on a property, citing incorrect legal advice. She has referred herself for investigation, sparking a political firestorm and calls for her resignation.
UPDATE: Angela Rayner resigned
LONDON — Deputy Prime Minister Angela Rayner has found herself at the center of a political controversy, admitting that she underpaid stamp duty on her £800,000 flat in Hove.
The revelation, which followed weeks of intense media scrutiny, has led to Ms. Rayner referring herself to the independent adviser on ministerial standards and a commitment to pay any tax owed.
The senior Labour figure, who also serves as Housing Secretary, said she was “devastated” by the error, stating it was based on inaccurate legal advice she received during the purchase.
While the opposition has been quick to demand her resignation, Prime Minister Keir Starmer has publicly offered his full support, praising her transparency and her working-class background.
The Details of a “Complex” Situation
The underpayment relates to the purchase of a property in Hove, East Sussex. According to reports, Ms. Rayner paid the standard rate of stamp duty, estimated at £30,000, instead of the higher rate for second homes, which could have amounted to as much as £70,000. The discrepancy is said to be around £40,000.
The issue stems from Ms. Rayner’s complex property arrangements, including a trust set up for her disabled son in 2020.10 She explained that she had sold her stake in a family home in her Greater Manchester constituency to this trust and was advised that this meant the Hove flat could be treated as her only dwelling for tax purposes.
However, subsequent legal advice from a leading tax counsel has indicated that “complex deeming provisions” related to the trust mean she was still liable for the higher rate of stamp duty.
In a public statement, Ms. Rayner acknowledged the mistake and emphasized that her decisions were guided by her children’s best interests.
She also revealed that a court order had previously prevented her from discussing the details of her financial affairs. She had the order lifted in order to provide full transparency.
Political Fallout and Calls for Resignation
The admission has ignited a political firestorm, with Conservative Party members calling for her resignation.16 At Prime Minister’s Questions, Conservative leader Kemi Badenoch asked why Ms. Rayner was still in office, to which Sir Keir Starmer staunchly defended his deputy, praising her integrity.
The controversy is particularly awkward given Ms. Rayner’s role as Housing Secretary and her previous public stance against tax evasion.
Tax experts have weighed in, with some expressing sympathy for Ms. Rayner, noting that the complexities of UK tax legislation could easily trip up even those who seek professional advice. Others have questioned whether her actions were an attempt to avoid the higher tax rate.
Ms. Rayner has stated she is working with HMRC and expert lawyers to resolve the matter and pay what is due.
The independent investigation by the ministerial standards watchdog will determine whether she breached the ministerial code, a process that will continue to be a focal point in UK politics.
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