Deputy Prime Minister and Housing Secretary Angela Rayner has admitted that she underpaid stamp duty on the purchase of her £800,000 seafront flat in Hove, East Sussex, and has referred herself to the Independent Adviser on Ministerial Standards for investigation.
The news follows weeks of criticism over her property deals. Some say she saved nearly £40,000 in stamp duty. She did this by taking her name off the deeds of a family home in Ashton-under-Lyne, Greater Manchester, before buying a flat in Hove. This arrangement made the flat her sole property in order to qualify for the reduced standard rate of stamp duty. Experts later decided that complex “deeming provisions” linked to a trust for her disabled son made her liable for the highest rate.
Rayner said the trust was set up in 2020 through a court order after a life-altering injury to Heather’s son. Her portion of the Ashton property during her 2023 divorce was put into the trust. The proceeds from selling the rest of her stake were used to help pay for the Hove purchase.
Originally, she had based her legal advice on owing only the standard rate of stamp duty. After media commentary questioned her position, she sought more advice from a senior tax counsel. They determined that more tax was due. Rayner has since written to HMRC to pay the money and committed to full co-operation with the ethics inquiry.
On Sky’s Electoral Dysfunction podcast, Rayner said she was “in shock” and “devastated” by the news. She insisted she had always tried to follow the rules. She added that her decisions were made in the best interests of her children, specifically in finding a way to secure her son’s long-term care. “I made a mistake based on the advice I had at the time, and a leading expert has now stated that advice was incorrect,” she said.
The furore has prompted political outrage. Prime Minister Sir Keir Starmer defended his deputy. He praised her openness and her choice to lift a confidentiality order about her son’s situation. This way, all relevant facts can be shared with the public. He called her “the builder of 1.5 million homes” and said she’s giving “the biggest upgrade to workers’ rights for generations.” She rose from a working-class family to reach high office.
Opposition leaders have accused Rayner of hypocrisy. They point to Labour’s stance on taxing second-homeowners. Tory leader Kemi Badenoch argued that Starmer should fire her. She pointed to past comments that linked tax fraud to other kinds of fraud.
Rayner has not dismissed the possibility that she thought of resigning, admitting she talked it over with her former husband. However, she maintains she is dedicated to solving the issue and preserving public trust. “Most people do make mistakes,” she commented, “and I hope people will be able to see that I acted in an attempt to do the right thing.”.
The matter is now in the hands of the Independent Adviser on Ministerial Standards, as HMRC decides the final sum due — possibly as much as £40,000.
